The Heritage School
Scheme of Work
Cambridge International AS & A Level
Business 9609
Scheme of Work
1 Business and its environment (AS Level)
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
Understand the
purpose of business
activity
In groups learners use their existing knowledge/awareness to agree a
definition of ‘business’ and an explanation of what businesses do. Each
group presents its ideas to the class.
EVALUATION
1.1 Enterprise
1.1.1 The nature of
business activity
KC5 Innovation
It can be very useful to use the school as a business and find out your
schools’ purpose. The school may have a mission/vision statement or a
clear set of objectives. If not, learners can come up with their own based on
their knowledge.
Learners give a presentation about a local business including what the
business sells/provides and what they think is are the most likely purposes
of those businesses.
Extension activity: learners complete a written assignment such as,
‘Identify four businesses and explain the main purpose of each of them’. (I)
Make this session as lively as possible – relate business activities to
learners’ own experiences e.g. the range of products and services that they
have used that day.
1.1.1 The nature of
business activity
KC4 Enterprise
Understand the
factors of production
needed for business
activity: land, labour,
capital and
enterprise
Learners are likely to have plenty of examples of each factor of production
as long as each is explained carefully. Try not to use too many examples
when explaining, allowing learners to find their own.
Learners create a list of as many specific examples of each factor of
production under the headings: land, labour, capital and enterprise. (I)
Extension activity: learners focus on a local business (any size) and make
a list of what they think that business owns/uses for each of the factors of
production.
2
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
The BBC website has some useful resources about the factors of
production. Although GCSE level material it covers relevant points:
www.bbc.co.uk/bitesize/guides/zdqvf4j/revision/1
1.1.1 The nature of
business activity
KC5 Innovation
Understand the
concept of adding
value
Explain the concept of ‘creating/adding value’ by introducing the idea of
‘selling for a higher price than the cost of bought-in materials’.
In groups, give each one a list of four (different) businesses. Ask them to
discuss how each business could ‘create more value’ and present their
ideas to the class.
Follow this up by asking each group what a business could do to create
value from a cheap aluminium tray (NOT carrying food). Each group
presents its ideas to the class, who discuss and vote on the best ideas.
Adding value and creating value – essentially the same concept BUT
creating value gives a more proactive meaning to the process. Effective
business decisions can create value, even to basic materials.
Learners should not become confused between ‘added value’ and ‘profit’.
www.tutor2u.net/blog/index.php/business-studies/comments/adding-valuecreative-uses-of-a-aluminium-tray
1.1.1 The nature of
business activity
KC3 Decisionmaking
Understand the
nature of economic
activity, the problem
of choice and
opportunity cost
Introduce the concept of ‘scarcity’ and emphasise it does not mean ‘not
enough money’. Lead a class discussion on the need for economic activity
as a means of production and therefore producing more to meet consumer
and business needs. In pairs learners discuss the following questions:
 what choices have you had to make with scarce resources?
 what was the opportunity cost?
 how can opportunity cost be applied to the choices you may have
made about subjects or the school you attend?
 what examples can you think of where a business or government
has had to make a choice?
 what was the opportunity cost?
Learners report back to the whole class.
3
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
As an additional option, try the ‘popcorn’ activity:
www.unomaha.edu/college-of-business-administration/center-for-economiceducation/teacher-resources/k-5/popcorn-economics.pdf. Use lined paper
instead if food is not allowed and tell learners they have to write an essay
and need to come and get the paper from a ‘box’ rather than a ‘bag’.
Extension activity: set learners a written assignment such as, ‘Evaluate,
using the concept of opportunity cost, how you made your A Level choice’.
(I)
Learners should understand that scarcity occurs even in wealthy countries
and that the problem of opportunity cost applies to all decision makers –
government, business and individuals.
1.1.1 The nature of
business activity
KC1 Change
Understand the
dynamic business
environment
KC5 Innovation
In groups learners discuss:
 how have your parents’ lives changed since their childhood?
 what products are available today which were not available 10
years ago?
 what products do you think might be available in the next 10
years?
 how could businesses respond to changes such as these?
 what have been the main causes of recent change in the local
area?
Class discussion on the topic, ‘Change is always good for business.’
Highlight key learning points.
Extension activity: learners complete a written assignment such as,
‘Analyse how any business of your choice could be affected by changes in
the business environment’. (I) (F)
1.1.1 The nature of
business activity
KC3 Decisionmaking
Understand why
businesses succeed
The factors businesses need to succeed can be taught by planning a new
enterprise. Many UK schools operate Young Enterprise schemes –
research to see if similar schemes exist in your country that enable groups
of learners to set up their own mini-enterprises and compete with each
other for the best new ideas. In pairs, learners decide:
4
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise



KC4 Enterprise
what they think it takes to organise a concert
what the five most important elements for success are
why each one is important.
Each pair feeds back to the class to see what range of ideas are provided.
Focus on the most important (venue, marketing, the band, security, car
parking/transport, merchandise, sales of refreshments, ticketing, etc.)
If possible, arrange a class talk with a young entrepreneur, e.g. a former
learner at the school/college. Ask them to talk about:
 how they succeeded when many new businesses fail?
 what were the key factors in this success?
 do these factors transfer to other business types?
Young Enterprise (or similar activity) could be used over a period of weeks
or months to develop the skills needed to create a business start-up.
Learners taking part in such schemes are also better able to understand the
role and importance of ‘entrepreneurs’ (see next section).
The links are to the UK and Malaysian schemes, or do an internet search
for similar organisations in your own country. www.young-enterprise.org.uk/
The Tycoon challenge is also a good way to run a small enterprise activity
in school/college. Although the competition may not be available in your
country, the resources may be available and similar competitions, such as
the £10 challenge can be used if time permits www.tycoon.com/
1.1.1 The nature of
business activity
KC5 Innovation
Understand why
many businesses fail
The reason why new businesses fail can also be taught through learners’
experience of planning their own business – see previous activity for links to
Young Enterprise programmes. In groups allocate each one an example of
a real business failure. Learners should:
 use the internet to research why the business failed
 discuss the possible reasons for failure, e.g. lack of original idea,
poor/inexperienced management, lack of finance
 briefly present their findings to the whole class.
Extension activity: learners complete a written assignment, e.g. ‘Analyse
two reasons why small businesses are more likely to fail than large ones’ (I)
5
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Example business failures learners could use for the group activity include:
 Pan Am
 DeLorean Motor Company
 Polaroid
 Enron
 Woolworths.
 MySpace
 Blockbuster
 Blackberry.
The Forbes website provides a good but quite advanced article on the
reasons for new businesses failing.
www.forbes.com/sites/ellevate/2019/10/24/eight-common-reasons-smallbusinesses-fail/?sh=55a2b3944fbb
1.1.1 The nature of
business activity
KC2 Context
Understand the
differences between
local, national and
multinational
businesses
Learners will already know examples of each type of business (local,
national and multinational). Many media sources make little or no distinction
between international and multinational businesses. In Business the
distinction is that international businesses trade in other countries, whereas
a multinational business has capital/assets in another country.
Divide learners into three groups and allocate each group one type of
business (local, national and multinational). Each group should come up
with 10 examples of businesses in their category. For each category
learners should come up with two advantages of their given type of
business and two disadvantages of their given type of business.
Extension activity: using Paper 2 data (small case studies) learners
contextualise their advantages and disadvantages of local and national
businesses. Examples of data include:
 9609/22 Nov 2020 Local – Gemini Theatre
 9609/22 Nov 2020 National – Energy Solutions. (F)
1.1.2 The role of
entrepreneurs and
intrapreneurs
Understand the
qualities
entrepreneurs and
intrapreneurs need
In groups give learners five minutes to prepare a list of the personal
qualities and skills needed by successful entrepreneurs. Either give
different business contexts to each group or approach as a general
exercise.
6
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
KC4 Enterprise
for success
Each group feeds back its ideas to the class. Develop a definitive list from
this information. Learners research an entrepreneur and present to the rest
of the class the qualities that their given entrepreneur has, including:
 what the entrepreneur was most well-known for doing?
 what were their most important qualities?
 did they make any mistakes? (bankruptcy, etc.)
Intrapreneurs are a new addition to the 2023 specification and refer to
allowing employees to use their entrepreneurial skills within a business (as
opposed to an entrepreneur who uses their abilities to start a business).
Learners think about their school/college. Discuss ‘how could the
organisation encourage intrapreneurial activities?’
A list of successful entrepreneurs can be found at:
https://entrepreneurhandbook.co.uk/advice-from-10-of-the-worlds-richestentrepreneurs/
The difference between entrepreneurs and intrapreneurs:
www.tutor2u.net/business/reference/intrapreneurship
Qualities of an intrapreneur: www.entrepreneur.com/article/305337
1.1.2 The role of
entrepreneurs and
intrapreneurs
KC4 Enterprise
KC5 Innovation
Understand the role
of entrepreneurship
in creating and
starting up a
business
Entrepreneurs are responsible for combining the other three factors of
production (land, labour and capital). An option could be to find an empty
shop in a town near the school/college. Learners come up with a brief plan
of what type of shop could be set up in the space. Learners should come up
with the labour and capital items needed to start up their chosen business.
The results can be presented in a business report or orally during a lesson.
Feedback to learners should focus on the entrepreneurial decisions that
need to be made to set up the business.
Extension activity: find a local business that has started up recently.
Learners think about the entrepreneurial decisions that would have needed
to be made when starting up that business. Discuss the results.
The role of the entrepreneur in starting up a business:
www.bbc.co.uk/bitesize/guides/zjc22sg/revision/2#:~:text=Entrepreneurs
%20have%20an%20important%20role,steps%20to%20start%20the
7
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
%20business
1.1.2 The role of
entrepreneurs and
intrapreneurs
KC4 Enterprise
Understand the role
of intrapreneurship in
the ongoing success
of a business
As opposed to an entrepreneur starting a business, an intrapreneur is
involved in the ongoing success. Learners think about the decisions that
need to be made once a business has already been set up to continue to
make it successful.
Steve Jobs (Apple) was one of the first people to use the term intrapreneur
and his role in the ongoing success of Apple was one of the main reasons
for the business’s success. Learners research what decisions Apple was
forced to make to resurrect its success in the 1990’s and continue its
success now.
KC5 Innovation
Extension activity: Steve Jobs died in 2011 and Apple lost its main
intrapreneur. Discuss how has/should the business try to develop new
intrapreneurial skills to maintain the success of the business? Have a
balloon debate about which is the best smartphone brand today. One
learner takes the role of each of the main brands that are available in your
country (Apple, Samsung, LG etc.) and argues that recent intrapreneurial
activities of the affirm are the best today. The other learners vote as to
which firm/learner has made the best case.
Financial times article about Steve Jobs coining the term ‘intrapreneur’:
www.ft.com/content/fb6c6008-2181-11ea-b8a1-584213ee7b2b
1.1.2 The role of
entrepreneurs and
intrapreneurs
Understand the
barriers to
entrepreneurship
KC5 Innovation
Learners come up with a list of reasons why they have not set up their own
business. The list is likely to include:
 too young
 no money/capital
 no experience
 no financial backing
 too scary.
This can develop into a list of barriers to entrepreneurship. There is no
definitive list, although each of the above is a barrier to entrepreneurship.
1.1.2 The role of
Understand business
Explain to learners the difference between risk and uncertainty. Use a piece
8
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
entrepreneurs and
intrapreneurs
risk and uncertainty
KC5 Innovation
of data from a previous Paper 2 (small case study) about an entrepreneur
(9609/22 Nov 2019 – Quality Fencing is a good example) Learners think
about the risks and uncertainties involved in the business decision.
This webpage contains a useful table of the main differences between risk
and uncertainty:
https://keydifferences.com/difference-between-risk-and-uncertainty.html
1.1.2 The role of
entrepreneurs and
intrapreneurs
KC2 Context
Understand the role
of business
enterprise in the
development of a
country
KC4 Enterprise
Learners research and prepare a presentation of a recent successful new
business in their own country outlining:
 what benefits such businesses create for the people and economy
of the country
 what role entrepreneurship plays in fostering these benefits.
One learner in each group presents their completed presentation.
KC5 Innovation
Extension activity: learners complete a written assignment such as,
‘Analyse two reasons why the government should encourage more people
to become entrepreneurs. (I)
The Shell Livewire website link about the support offered by one
multinational for young entrepreneurs is a good starting point for this
activity: www.shell.co.uk/sustainability/society/encouraging-enterprise/shelllivewire.html
1.1.3 Business plans
KC6 Strategy
Understand the
meaning and
purpose of business
plans
Each business will have different needs and as such a business plan must
be flexible enough to cover all of those needs. There is no set way to plan a
business and learners need to be understand the purpose of the plan
before analysing the advantages and disadvantages of it. Discuss the main
purposes of a business plan, including:
 to clarify the business idea
 to attract finance
 to monitor progress over time.
Extension activity: in a previous activity learners would have encountered
risk and uncertainty. One of the main purposes of a business plan is to
reduce the specific risks and uncertainties of a new business. Discuss how
a good business plan can reduce risk and uncertainty and contextualise this
9
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
by thinking about local businesses that may have set up recently.
The main purposes of a business plan:
https://smallbusiness.chron.com/main-purposes-business-plan-2599.html
1.1.3 Business plans
Understand the key
elements of business
plans
Learners discuss ideas for a business in groups and write a business plan
using the business planning tools provided by banks. The exact content of
their plan is less important than learners gaining familiarity with the detail
and elements of the business plan in operation.
Extension activity: learners devise their own business planning tool,
similar to the banks’ versions, but specific to your local business area. This
could include some of the external influences that are specific to your
locality/country. The completed pack should be in a format that a real
business could use. Most banks provide support for small businesses by
producing packs for writing a business plan. If possible, use an online
version or ask the bank for enough packs for group work. Some potential
links are provided below.
Business planning tools from a selection of banks (others available too):
www.barclays.co.uk/Startupsupport/Writingasmallbusinessplan/P12425596
49359
www.lloydsbank.com/business/resource-centre/business-guides/writing-abusiness-plan.html
www.rbcroyalbank.com/business/advice/starting-a-business.html?
utm_source=redirect&utm_medium=redirect&utm_campaign=bfs_srvr_redir
ect
https://bizconnect.standardbank.co.za/start/business-planning/referencedocuments/business-plan-template.aspx
www.business.hsbc.uk/en-gb/corporate/gb/article/business-plan
1.1.3 Business plans
KC6 Strategy
Understand the
benefits and
limitations of
business plans
Divide the class into four groups – large businesses, small businesses,
established businesses and start-up businesses. Each group produces a
table presenting the benefits of using a business plan for the following
stakeholders of the business type you have allocated to them:
 owners
 banks
10
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise





employees
managers
local community
suppliers
customers.
For each stakeholder, learners develop a chain of analysis for each benefit.
The chain of analysis should go through the (likely) effects on the business.
It is essential when analysing that learners think about the whole process,
not just go straight to increase profit or enable survival.
The benefits of a business plan for a small business can be found here and
makes a good starting point:
https://smallbusiness.chron.com/benefits-business-plan-3245.html
1.2 Business structure
1.2.1 Economic
sectors
KC2 Context
KC5 Innovation
Understand the
primary, secondary,
tertiary and
quaternary sectors
and businesses
within those sectors
Give a simple explanation of the distinction between primary, secondary,
tertiary and quaternary sectors.
Give learners a pre-prepared worksheet with the names of 20 businesses in
your country. In groups, learners classify each business on the list into the
relevant sector (conglomerate businesses could operate in all three).
On completion, give feedback to the whole class. It may be useful to pair up
each factor of production with another term, for example:
 primary – extraction
 secondary – manufacturing
 tertiary – service
 quaternary – information.
Note: the quaternary sector is an addition to the 2023-2025 syllabus.
This Wikipedia website explains the quaternary sector:
https://en.wikipedia.org/wiki/Quaternary_sector_of_the_economy#:~:text=T
he%20quaternary%20sector%20describes%20the,knowledge%2Dbased
%20services%20such%20as
Learners need to be able to explain how businesses in all four sectors could
11
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
‘create value’. This is often easier to do in the secondary/manufacturing
sector but the concept needs to be applied to the other three sectors as
well.
The quaternary sector is the newest and perhaps the least well-known
among learners.
The explanation of the sector in the following resource is appropriate for A
Level Business: https://geography-revision.co.uk/gcse/industry/quaternaryindustry/
1.2.1 Economic
sectors
KC2 Context
Understand the
public and private
sectors and
businesses within
those sectors
Give a simple explanation of the main differences between the public and
private sector and ask learners to respond with examples of each from their
own country.
To consolidate learning, set learners a written assignment such as ‘Evaluate
why some businesses operate in the private sector and some operate in the
public sector in our country’. Learners should not confuse public sector
organisations with public limited companies.
The Wikipedia link is a useful reference to the sort of private and public
sector organisations to cover: https://en.wikipedia.org/wiki/Stateowned_enterprise
The SlideShare link helps show the difference between private and public
sector organisations in UK/USA, but can be easily adapted to your own
country: www.slideshare.net/mraali/difference-between-public-and-privatesector
1.2.1 Economic
sectors
KC2 Context
Understand the
reasons for and
consequences of the
changing relative
importance of these
sectors
Learners research the level of public ownership of industry in their country.
What industries does your country have in public ownership? Learners then
analyse one advantage to the country of having public ownership.
The process of taking industries or firms from public to private ownership is
called privatisation. Investigate one example of privatisation that learners
may be familiar with. The process of taking industries from private to public
ownership is called nationalisation. Investigate one example of
nationalisation that learners may be familiar with.
12
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Divide learners into two groups. One group should think about as many
advantages to the business of operating in the public sector. The other
group should think about as many advantages to the business of operating
in the private sector.
This Wikipedia page shows the relative size of public sector size in different
countries:
https://en.wikipedia.org/wiki/List_of_countries_by_public_sector_size
The BBC (British Broadcasting Corporation) is a UK public sector business
and can provide a useful case study of the advantages and disadvantages
of public sector ownership. There is much debate whether the BBC should
maintain its status as publicly funded and this may provide a useful
business to focus on in this area. When discussing the public and private
sector, make clear that analytical points should be focused on either the
business or a clear stakeholder of the business, not simply debate over the
ethics of public ownership.
1.2.2 Business
ownership
KC4 Enterprise
Understand the main
features of different
types of business
ownership; sole
traders, partnerships,
private limited
companies, public
limited companies,
franchises, cooperatives, joint
ventures and social
enterprises
Give learners details of a number of businesses in different situations, e.g.
family business, start-up business, multinational business aiming to expand,
etc. In pairs, learners suggest and justify an appropriate legal structure for
each (one business each or all depending on time). Each pair feeds back
their proposals to the class.
Extension activity: learners complete a written assignment such as, ‘The
correct legal structure for a business depends on what factors?’. Learners
complete with at least four factors explained.
A case study approach works well for this topic. Each exam series provides
many case studies and data extracts that can used to analyse the
advantages and disadvantages of different forms of ownership. Longer
case studies can be found in Paper 3, whereas shorter business examples
exist in Paper 2. Most of these examples include identification of the
ownership of the business. Examples from Paper 2 include:
 9609/23 Nov 2020 Braid Runner – sole traders
 9609/22 Mar 2017 Gourmet Ices – partnerships
 9609/22 Nov 2020 Energy Solutions – private limited companies
13
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise





1.2.2 Business
ownership
KC3 Decisionmaking
Understand the
appropriateness of
different types of
business ownership
9609/21 Nov 2020 Electric Cars – public limited companies
9609/22 Jun 2018 Umpire Umbrellas – franchises
9609/23 Jun 2019 First Nature – co-operatives
9609/22 Jun 2019 Too Tasty – joint ventures
9609/23 Nov 2019 U-Learn – social enterprises. (F)
Prepare a presentation highlighting the main features of each legal form of
business. It is essential that you cover issues such as, limited liability,
raising finance, owner’s independence and control versus ownership.
Learners produce their own mind-map on this topic. (I)
It is important that learners realise that each form of legal ownership can be
appropriate depending on the context. This topic is a good time to work on
evaluative skills, so learners can use case studies (such as those identified
in the previous topic) and evaluate what could change in the context that
might mean the business should change its business ownership.
Give learners an example of a business and ask them to analyse why it has
the specific ownership that it does. Evaluate what could change that may
lead the business to change ownership.
Extension activity: 9609/22 Nov 2017 (Occasion Cards) has a question
about changing from a private limited company to a public limited company.
(F)
The teaching of this topic does not have to be specifically related to the
business legal structures of each country if these are slightly different from
those referred to in the syllabus – although local examples can be used to
illustrate the main differences between these forms of ownership.
The gov.uk website link is one useful source of information for this activity:
www.gov.uk/business-legal-structures/limited-company
1.2.2 Business
ownership
Understand the
concepts of unlimited
liability and limited
liability and their
Class discussion on the nature of liability and what a business could be
liable for, such as:
 debts
 accidents at work
14
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
importance

consumer injuries.
Discuss why business owners might want to limit the amount of liability they
incur. Limited liability is an essential concept for learners to understand.
Make sure learners know why owners may prefer to have limited liability.
1.3 Size of business
1.3.1 Measurement
of business size
KC2 Context
Understand the
appropriateness of
different methods of
measuring the size of
a business
Introduce the class to the main measures used to compare business size,
such as:
 number of employees
 sales turnover
 capital employed
 market capitalisation
 market share.
In groups and using a pre-prepared hand-out or by asking learners to
complete their own research (e.g. into public limited companies in own
country), ask them to rank the size of up to 10 businesses using the
different measures you specify. Ask why the results give different rank
orders?
Discuss the findings of the group task and discuss which measurement
method might be most useful in different industries. The important issue to
convey is that the different methods of measuring business size can be
contradictory – so there is no ‘correct method’.
Note: profit is not a measure of size but of performance.
1.3.2 Significance of
small businesses
Understand
advantages and
disadvantages of
being a small
business
If possible, arrange for learners to interview at least one owner of a small
business, asking them what they see as being the advantages and
disadvantages of such a business. Each group feeds back to the whole
class.
Alternatively, if this is not practical to deliver, in groups, learners compare a
small business with a large one in the same industry, e.g. a convenience
store and large supermarket group. They then analyse the advantages and
15
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
disadvantages of the small business compared to the large organisation.
Each group feeds back to the class.
The advantages of operating a large business can usually be ‘turned round’
to become the disadvantages of small businesses.
The two websites listed provide a good starting point for learners to
research information for this activity:
https://courses.lumenlearning.com/ivytech-introbusiness/chapter/readingadvantages-and-disadvantages-of-small-business-ownership/
https://businesscasestudies.co.uk/the-importance-of-entrepreneurship-insmall-businesses
1.3.2 Significance of
small businesses
Understand
strengths and
weaknesses of family
businesses
Circulate one or more case studies of family businesses in your own
country and in groups learners suggest the possible strengths and
weaknesses of it being operated/managed by the family. Ideally, each group
would consider a different business. Each group feeds back their findings to
whole class.
Conclude with a whole class debate: Should management of family
businesses always be ‘kept in the family’?
Hand out the data for 9609/22 Nov 2017 (Occasion Cards). The data
includes the quote ‘OC’s employees benefit from the business being owned
by a family’. Learners create a list of benefits to the employees of working
or a family business. Discuss the possible benefits and any possible
disadvantages for the employees.
Not all family businesses are small businesses – although many are. The
following link identifies some of the biggest family businesses in the world:
www.businessinsider.com/the-worlds-21-biggest-family-owned-businesses2015-7?r=US&IR=T#21-sun-pharmaceutical-1
www.campdenfb.com/article/study-reveals-strengths-and-weaknessesfamily-businesses
1.3.2 Significance of
small businesses
Understand the
importance of small
businesses and their
Learners investigate the role of small businesses in their own country and
consider the benefits of small businesses to the wider economy. Discuss
with learners:
16
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
role in the economy



what proportion of total employment are small businesses
responsible for?
do they export?
have they created new product ideas/solutions? (I)
Most businesses start small and learners can be set a research task to
investigate how larger businesses grew from smaller ones. The story of
McDonalds can be used to demonstrate how a small business grew into the
current global business. The film ‘The Founder’ can be a useful resource
and tells of how the original McDonalds restaurant became the current
franchise giant. It also includes references to how a franchise model works
and can be a useful recap of franchises.
Extension activity: learners complete a written assignment such as, ‘Small
businesses are important to my country’s economy for the following
reasons…’. Learners should have at least four reasons considered. Discuss
the main points as a class.
The two websites listed provide a useful source of ideas for this topic.
https://businesscasestudies.co.uk/the-importance-of-entrepreneurship-insmall-businesses
smallbusiness.chron.com/important-small-businesses-local-economies5251.html
1.3.2 Significance of
small businesses
KC4 Enterprise
Understand the role
of small businesses
as part of the
industry structure in
some industries
Take examples of small businesses in, for example, the car industry or
tourist industry, and explain the benefits they can offer to the whole industry
as:
 suppliers of specialist goods/services
 innovators (prepared to try out new ideas)
 competitors (encouraging efficiency improvements).
Learners discuss the role of small businesses and identify why a small
business is appropriate in that role. In groups each one takes one of the
small business examples discussed in the previous tasks and researches
their role in the industry, producing an oral report for the class of its findings.
The website link is to a useful video resource with Steve Case of AOL
explaining how large businesses can benefit from innovative small ones:
17
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
www.mckinsey.com/insights/growth/restarting_the_us_smallbusiness_growth_engine
Where possible use local/national examples of how small businesses
contribute to your economy.
The following websites give some discussion of the importance to the UK
economy:
https://smallbusiness.co.uk/the-importance-of-small-businesses-in-the-ukeconomy-2492626/
https://labs.com/what-are-smes-why-are-they-so-important-for-the-ukeconomy/
1.3.3 Business
growth
KC6 Strategy
Understand why and
how a business
might grow internally
(organic growth)
Give pairs of learners a case study context from your country of a business
that is expanding internally, e.g. more workers, more premises, more
equipment. Discuss the reasons why this business is expanding and the
benefits the business might gain from this. Create a list of reasons for the
internal expansion. Discuss as a class.
Extension activity: learners complete a written assignment such as, ‘The
growth of a business has advantages and risks. Discuss’.
The website link is to a simple introduction for learners on this topic,
including a quiz:
www.bbc.co.uk/schools/gcsebitesize/business/aims/sizeandorganisationrev
1.shtml
Apple is a good example of internal growth:
www.businessinsider.com/apple-and-efficiently-growing-its-future-2010-5?
r=US&IR=T
1.3.3 Business
growth
KC6 Strategy
Understand the
different types of
external growth
through merger and
takeover: horizontal,
vertical (backward
and forward),
Allocate groups one of the following types of external growth:
 horizontal merger
 vertical merger
 horizontal takeover
 vertical takeover
 conglomerate
 friendly merger
18
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
conglomerate
diversification,
friendly merger,
hostile takeover

hostile takeover.
Groups find as many examples of their type of external growth as they can
and presents their findings to the class.
As businesses grow, so they change. Discuss:
 how do different stakeholders cope with this change?
 how might this tie in with areas such as marketing, people and
management?
www.s-cool.co.uk/a-level/business-studies/business-organisation/reviseit/the-growth-of-business
In comparison to Apple, Microsoft is a good example of external growth:
www.tutor2u.net/business/blog/external-growth-in-the-technology-sectormicrosoft-buys-linkedin
The benefit of teaching both internal and external growth together means
that learners can analyse and evaluate the different strategies of internal
versus external growth. Learners should be asked to look at local/national
examples of growth strategies and to be able to evaluate their
effectiveness.
1.3.3 Business
growth
Understand the
impact of a
merger/takeover on
stakeholders
Give groups a current external growth (merger or take-over) news story.
They then role-play the different stakeholder perspectives to external
growth. The roles ideally reflect those in the news item but as a minimum
include:
 employees
 managers
 owners
 customers.
Throughout the role play, learners note the different objectives each
stakeholder may pursue and on completion identify the potential lack of
synergy. Managing change is an important concept. The role of
management is to adapt, not to learn a series of rules and apply them
without thought to every situation. Just because a merger or takeover
makes financial sense, it may still cause many problems which need to be
managed.
19
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
1.3.3 Business
growth
KC6 Strategy
Understand why a
merger/takeover may
or may not achieve
objectives
Discuss how business growth can relate to business objectives. For
example:
 growth can help a business to increase profits (profit
maximisation/satisficing)
 growth can be a technique to allow business survival
 growth can allow a business to gain market share.
Learners create a mind-map of the consequences of business growth. Each
element of the mind-map should represent a different stakeholder of the
business and learners should build a picture of the good and bad
consequences on each stakeholder of the business growth. Specific
examples of business growth that has been successful and unsuccessful
can be useful to demonstrate the effects of business growth on the
achievement of business objectives.
An article discussing five failures that arose from business growth:
www.entrepreneur.com/article/310166
1.3.3 Business
growth
KC6 Strategy
Understand the
importance of joint
ventures and
strategic alliances as
methods of external
growth
Using the internet as a starting point, investigate as a class the joint venture
that led to the creation of the Concorde aeroplane. Learners answer the
following questions:
 what were the advantages of designing and manufacturing
Concorde as a joint venture?
 what were the risks for Britain and France?
Learners investigate a joint venture or strategic alliance that has made the
news more recently and write a brief report on the benefits/drawbacks to
stakeholders of both organisations. (I)
Extension activity: learners research the legalities of joint ventures and
strategic alliances. At what point does the law intervene and why? (I)
Joining together with another business has extra risks and potential
rewards. The planning of such ventures will be complex and require
bringing together of all the aspects of business to devise a strategy that
works.
en.wikipedia.org/wiki/Strategic_alliance
20
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
https://en.wikipedia.org/wiki/Joint_venture
Learners may need some additional support to understand the difference
between a joint venture and a strategic alliance. The following article has a
useful graphic showing some differences: www.wallstreetmojo.com/jointventure-vs-strategic-alliance/
1.4 Business objectives
1.4.1 Business
objectives in the
private sector and
public sector
KC2 Context
KC3 Decisionmaking
Understand the
nature and
importance of
business objectives
at corporate,
departmental and
individual levels
In groups learners make two different lists – one of personal objectives and
one of potential business objectives. Each group feeds back to the class.
Use this for a discussion on the benefits of setting aims/objectives. The list
should include the most likely business objectives:
 profit maximisation
 satisficing
 growth
 market share
 customer satisfaction
 survival.
Follow this with a class debate on business objectives to consolidate
learning. Demonstrate to learners how an objective can be translated from:
 corporate level (for example profit maximisation)
 departmental level (marketing team to increase sales by 5% over
the next year)
 individual level (Employee A to sell three more units in the next
month).
Learners need to consider objectives as more than being ‘make a profit’ –
although this may well be the long term aim of most other corporate
objectives – the impact of other possible objectives on business strategy
(decision-making) needs to be discussed.
Reinforce the idea that long term business aims need to be passed
down/communicated to the rest of the organisation.
The two websites listed provide some useful background material (including
a quiz for learners in the second one).
21
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
www.tutor2u.net/business/strategy/objectives.htm
www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershiprev1.shtml
1.4.1 Business
objectives in the
private sector and
public sector
KC2 Context
Understand the
objectives of
businesses – private
sector, public sector,
and social enterprise
In groups, give learners a specific business to work on – give half the
groups public sector businesses and the other half private sector
businesses. Each group draws up a table with at least one possible
corporate objective for their given business, two departmental objectives
that follow on from that corporate objective and four individual objectives for
workers/managers within that business that will help to meet the
departmental objectives.
Extension activity: learners complete the following essay, ‘Evaluate the
different objectives of a hospital operating in the public sector, compared to
a hospital operating in the private sector’.
A short video explaining the difference between public and private sector
business objectives: www.youtube.com/watch?v=NJY6P7tyD0&feature=emb_logo
1.4.1 Business
objectives in the
private sector and
public sector
KC6 Strategy
Understand the
importance of
business objectives
A good way to exemplify the importance of business objectives is to use an
example of a journey that needs to be undertaken. You have the transport,
you have a map or a Satnav, but without a destination (objective) you are
unlikely to get there. The same is true of a business without objectives.
Take a local business example and suggest three possible business
objectives (for example a local fast food restaurant). For each objective
learners suggest how the business might make different decisions. For
example:
 profit maximisation – the business might need to analyse what the
most popular opening hours are and only pen at these times,
reducing costs and maximising revenue
 survival – the business might open for as many hours as possible,
but with a small staff (or just the owner) to try and serve as many
customers as possible
 growth – the business might introduce more items to its menu to
diversify the products offered by the business and gain more
customers.
22
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Extension activity: class discussion about the objectives of your
school/college.
 what is the objective?
 why is the objective important?
 what recent decisions has the school/college management made
that are in line with this objective?
1.4.1 Business
objectives in the
private sector and
public sector
KC6 Strategy
Understand
corporate social
responsibility (CSR)
and the triple bottom
line – economic
(financial), social and
environmental
objectives
Using a case study example from your own country, discuss the following
questions, in groups:
 why is this business spending money/resources on
social/community activities that it is not legally required to?
 should all businesses do this?
 are there any problems with this approach?
Each group feeds back its conclusions to the whole class. Explain that CSR
often involves the focus on a triple bottom line:
 economic or financial – the focus on revenue, costs and profit –
most businesses would not survive without some attention to this
objective
 social – the focus on doing good for the community – this may
involve some compromise of the economic/financial objective as
the business needs to divert funds to helping society
 environmental – the focus on helping/not destroying the
environment – this means making the business as ‘green’ as
possible and will depend on the context of the business.
Extension activity: learners complete a written assignment such as, ‘CSR
must be adopted by all businesses if they are to be successful. Evaluate
this view’. Discuss:
 is CSR a help or a hindrance to long term profitability?
 does CSR assist a business to ‘create value’?
Learners should be able to discuss these issues by referring to actual
examples once they have completed this section. Try to use own country
examples where possible. The websites listed provide some useful
introductory, case study, discussion and image resources to help with this.
Learners need to be able to question the value of CSR too – especially if it’s
23
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
perceived as not being a ‘genuine’ approach to social values by business.
www.google.co.uk – type ‘corporate social responsibility’ into images
search.
www.bbc.co.uk/news/business-19876138
https://hbr.org/2015/01/the-truth-about-csr
1.4.1 Business
objectives in the
private sector and
public sector
KC6 Strategy
Understand the
relationship between
mission statement,
aims, objectives,
strategy and tactics
Learners research company websites for mission statements. (I)
In pairs learners discuss the statements they found:
 do they often state the same message?
 how useful are they?
 what is the difference between these and clear objectives?
Each pair feeds back to the class.
Using a team sporting activity, e.g. football, basketball, hold a class
discussion on how a team might devise an objective for a match and how
this can be translated into a series of strategies and then into individual
tactics.
Learners come up with their own objectives for their A Levels. Write a report
on what strategies and day-to-day tactics they intend to employ to meet
their objectives.
There is a wealth of information on corporate mission statements available
on many company websites. One such example (Coca-Cola) is listed here:
www.coca-colacompany.com/our-company/mission-vision-values
1.4.2 Objectives and
business decisions
KC6 Strategy
Understand the
different stages of
decision-making, the
role of objectives in
the stages of
business decisionmaking
Using a decision-making cycle from the suggested internet search, learners
work in groups and progress through each stage using an example
business decision you give them such as, ‘should we expand?’ or ‘how can
we reverse the fall in sales?’
Discuss as a class and explain how business objectives are used to reach
decisions at each of the stages in the decision-making cycle.
24
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Extension activity: learners consider an important personal decision of
their own, e.g. going/not going to university and then apply the decisionmaking cycle to this process. (I)
Learners feed back to the class on how well the process could be applied to
their own decisions.
The website provides some useful background material on business
decision making:
www.tutor2u.net/business/topics/decision-making
1.4.2 Objectives and
business decisions
KC1 Change
Understand how
objectives might
change over time
Provide a case study example from your own country of a business that has
expanded since being set up (it may be operating in new markets with new
products) and discuss as a class. If no relevant local example exists, Apple
is one good case study to use (see the Time magazine website link).
In groups learners consider four objectives that this business might have
established at different stages of its start-up and development. Ask them to
consider if a successful new competitor entered the market, how might the
objectives of the business change again? Each group feeds back to the
class.
Learners find their own local, national or international example of business
which has changed objectives over time and produce a sheet showing the
timeline of the business and how different objectives were relevant at
different times. Display the completed sheets on the wall for all to read:
www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershiprev3.shtml
content.time.com/time/specials/packages/article/0,28804,1873486_187349
1_1873530,00.html
1.4.2 Objectives and
business decisions
Understand the
translation of
objectives into
targets and budgets
Your own school/college can provide a useful setting for this topic. If the
long-term objective is to increase learner numbers by 20% in two years, will
this require a ‘dividing up’ of the objective into departmental and individual
targets and budgets? Learners explain why and then give examples of what
these departmental targets could be.
25
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Extension activity: find a well-known business which publishes its
objectives. Divide learners into four groups. Each group should take on the
role of a functional manager of a business (Marketing, Accounting and
Finance, Operations, HRM) and should suggest:
 what targets each of their departments would need to make to
reach the objectives?
 what money (budget) would be needed to make this happen?
This links in with the previous section on objectives, strategy and tactics,
and could be covered at the same time.
‘Budgets’ are covered in more detail in 5.5 Budgets – here it should be a
brief introduction to what a budget is) perhaps based on learners’ own
allowance budgets).
1.4.2 Objectives and
business decisions
Understand the need
for communication of
objectives and their
likely impact on the
workforce
In pairs, learners use a suitable case study to consider how workers might
be affected by new business objectives/targets and suggest ways in which
these could be communicated to the workforce. Pairs feed back to the
class.
This links to the mission statement, but is the mission statement an
effective way of communicating objectives as opposed to just stating ‘what
our business is about’? The website link provides some interesting ideas on
this.
This activity also links with the previous one – not only the objectives but
the targets and budgets need to be communicated to the workforce:
ies.ncsu.edu/news-center/blog/the-importance-of-communicating-goalsand-objectives
1.4.2 Objectives and
business decisions
Understand SMART
(specific,
measurable,
achievable, realistic,
time-limited)
objectives
There are many versions of SMART and learners should use the ones from
the syllabus. Ask learners to write their own set of SMART objectives using
the link. This should allow them to focus on what is important to their life.
Alternatively, the class could set a SMART objective, so that they achieve
as much as possible. This could be displayed at the classroom door.
Discuss the advantages and disadvantages of setting SMART objectives.
Could the use of SMART objectives restrict a business too much?
26
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
Extension activity: learners complete a written assignment such as,
‘Analyse why SMART objectives are important for a business’ (I)
SMART objectives are explained here:
www.samhsa.gov/sites/default/files/nc-smart-goals-fact-sheet.pdf
1.4.2 Objectives and
business decisions
KC6 Strategy
Understand how
ethics may influence
business objectives
and activities
Find a recent news article about a business behaving ethically or
unethically. Discuss article with learners.
In pairs, learners prepare a short presentation on, ‘What is meant by
business ethics,’ and ‘Should businesses behave ethically?’ Each pair
presents to the class, which in turn gives feedback on the views presented.
Learners research examples from their own country of businesses acting
ethically or unethically and provide a written answer to the following,
‘Analyse the costs and benefits of a business having ethical objectives'. (I)
Learners complete a written assignment such as, ‘Analyse the reasons why
ethical issues are becoming increasingly important in business decision
making’. (I)
Learners generally enjoy discussions about business ethical dilemmas.
There is a close link between this section and CSR.
Ethical business decisions mean more than just ‘acting legally’.
business-ethics.com/ – business magazine on ethical issues
www.tutor2u.net/business/reference/business-ethics-introduction
www.tutor2u.net/business/reference/business-ethics-in-practice
https://businesscasestudies.co.uk/ethical-business-practices/
www.telegraph.co.uk/finance/newsbysector/industry/10624268/job-searchbusiness-ethics.html – article on the impact of business ethics on
recruitment
Case studies are a key part of effective teaching of this topic.
1.5 Stakeholders in a business
27
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
1.5.1 Business
stakeholders
KC2 Context
Understand
individuals or groups
with an interest in the
activities of a
business
Understand internal
stakeholders and
external stakeholders
Give learners a local case study example of a major business development,
such as a large construction project. If no suitable local examples exist, use
as an example a major retailer planning to develop a new shopping centre
on park land 5 km from your nearest town centre. Discuss as a class. In
groups learners suggest which stakeholder groups will be affected by this
development, such as:
 owners/shareholders
 managers
 employees
 customers
 suppliers
 lenders
 government
 local community.
Learners produce a mind-map of all the local, national and international
businesses they are stakeholders of themselves, e.g. as customers, parttime employees, living close to, or having relatives working there/owning
shares. Major construction project websites often contain details of the
potential advantages of such a scheme. Using this information, learners can
then research the further details as required, e.g. local unemployment rate,
proximity to housing, suitability of local roads for truck deliveries, etc.
Website for any major construction project in your own country, e.g.
www.hs2.org.uk/ in the UK.
The Tutor2u.net link introduces stakeholder groups and discusses the
responsibility businesses have to them.
www.tutor2u.net/business/gcse/organisation_stakeholders_ethics.htm
1.5.1 Business
stakeholders
Understand their
roles, rights and
responsibilities
In groups, with each group representing a different stakeholder learners use
the internet to research and identify the role, rights and responsibilities of its
allocated group, feeding back its findings to the whole class.
Use the stakeholder groups covered in the previous activity as a reference
for this task.
www.tutor2u.net/business/gcse/organisation_stakeholders_ethics.htm
28
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
1.5.2 The relative
importance and
influence of
stakeholders on
business activities
Understand the
impact of business
decisions on
stakeholders and
their reactions
Staying in the stakeholder groups set up in the previous activity, ask each
group to analyse the impact on them of the major local development
selected at the start of the topic. Encourage them to look at both the
potential advantages and disadvantages.
Follow this with a class debate on, ‘This development should be allowed as
the advantages are greater than the disadvantages.’ Each group
participates in line with its stakeholder role.
KC2 Context
Learners research the recent launch of a new product, identify the likely
reactions of the different stakeholder groups to the launch and present their
findings to the class. (I)
Good examples for the individual task include mobile phones, games
consoles, sweets/chocolate bars and cars:
smallbusiness.chron.com/deal-multiple-stakeholders-organizations62017.html – some useful articles on a range of stakeholder issues
1.5.2 The relative
importance and
influence of
stakeholders on
business activities
Understand the
impact of stakeholder
aims on business
decisions
KC3 Decisionmaking
Stakeholders all have their own aims and these are often contrary to the
business’ objectives. Role play a business that is well-known to the
learners. Each learner should pretend to be a different stakeholder group,
discussing a business decision. An example could be that the business
wants to start a night shift at their factory.
Each stakeholder should think about their own concerns and be prepared to
argue their point of view. A separate group of learners should be observers
to the exercise and decide (based on the stakeholder group and the quality
of the arguments) which groups will influence the business.
Extension activity: BBC resource on the influence of stakeholders:
www.bbc.co.uk/bitesize/guides/z4gcd2p/revision/2
Stakeholder influence grid:
www.bbc.co.uk/bitesize/guides/z4gcd2p/revision/2
1.5.2 The relative
importance and
Understand how and
why a business
Learners remain in their stakeholder groups and use the website link for a
discussion on the ethical positions of different stakeholder groups and how
29
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
influence of
stakeholders on
business activities
needs to be
accountable to its
stakeholders
these can influence the perceived advantages and disadvantages of the
development you have been looking at.
Set a written assignment such as, ‘Analyse, with examples, how
stakeholder groups influence business decisions and how conflicting
stakeholder needs can be resolved’. This will provide useful preparation for
the next activity. (I)
The Tutor2U link provides a useful recap of corporate social responsibility in
the context of stakeholder groups.
www.tutor2u.net/business/gcse/organisation_stakeholders_ethics.htm
1.5.2 The relative
importance and
influence of
stakeholders on
business activities
Understand how
conflict might arise
from stakeholders
having different aims
and objectives
Using the development selected at the start of this topic, ask learners what
measures the management (and the government through planning controls)
could put in place to resolve the conflicts/different aims identified for each
stakeholder group.
Set learners a written assignment such as, ‘Select four stakeholder groups
that will be affected by the building of a power station in your region.
Explain why each group will have different aims, how these aims could
conflict and what steps the company could take to resolve them’. It is
important to give learners the opportunity to consider how effective
management can minimise stakeholder conflicts to the benefit of the
business.
www.google.co.uk – type ‘stakeholder conflict’ into images search. Search
for own country examples too.
1.5.2 The relative
importance and
influence of
stakeholders on
business activities
Understand how
changing business
objectives might
affect its
stakeholders
Give learners a business case study example where the original objectives
changed over time and use this as the basis for a class discussion in which
they identify what impact these changing objectives will have on different
stakeholder groups.
Give learners a different stakeholder from the case study. Ask them to
decide whether the changes in the case study have had a positive or
negative effect on their stakeholder group and write a brief report on their
conclusions. It is important to use a case study here where there have been
30
Scheme of Work
WEEK
1-7
TOPIC
LEARNING
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
1.1 Enterprise
a number of changed objectives.
The Apple case study mentioned in an earlier unit can be used as a basis
for this if no other case study exists:
content.time.com/time/specials/packages/article/0,28804,1873486_187349
1_1873530,00.html
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
31
Scheme of Work
2 Human resource management (AS Level)
WEEK
TOPIC
8-15
2.1 Human resource management (HRM)
2.1.1 Purpose and
roles of HRM
KC3 Decisionmaking
OBJECTIVES
The role of HRM in
meeting
organisational
objectives
TEACHER/PUPIL ACTIVITIES
EVALUATION
Draw a line across the board. Tell learners that this represents the lifecycle
of an employee in an organisation. Add the words ‘recruitment’ and
‘selection’ at one end of the line. Discuss what else might fit on the line.
One interesting point would be to include workforce planning and discuss
the need for this process to happen before the employee is involved.
Learners create a mind-map of all the elements of human resource
management. As they develop these, ask them to address follow-up
questions such:
 why do people require more management than capital items?
 if people require more managing, why do businesses sometimes
prefer to use people rather than machines? (I)
Learners draw a table with a column for each of the HRM functions. They
then identify the day-to-day tasks they might expect someone working in
HRM might to in each of the seven identified areas. (I)
This is an introduction to the role of HRM. Learners need to understand why
people require management beyond that given to machines and capital
items. The seven HRM functions to cover are:
 recruitment
 selection
 training
 induction
 advice
 guidance
 workforce planning.
Extension activity: learners should start to see that these seven HRM
functions build into a coherent HRM strategy which itself is a vital part of the
overall business strategy.
www.youtube.com/watch?v=4bbpwoPbC5k – A short video of brief clips
from TV and movies with elements of HRM. Learners watch the video and
write down as many HRM roles and issues as they can spot.
32
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
www.google.co.uk – type ‘what is HRM’
2.1.2 Workforce
planning
KC3 Decisionmaking
The reasons for and
role of a workforce
plan
In groups, learners design the workforce requirements for setting up a
sweet shop in the school/college. They should think about the skills they
require, the number of workers they need and the hours they would have to
work for. Each group then hands their workforce plan to another group and
they report back with constructive criticism.
Learners write a report about the importance of having a workforce plan for
their sweet shop, analysing the time it took to develop and identifying the
business constraints caused by having too rigid a plan. Each report should
conclude by coming to a judgement about the effectiveness of workforce
planning in the given scenario. (I)
2.1.2 Workforce
planning
Measurement of
labour turnover
The implications of
high and low labour
turnover for a
business
Give learners an understanding of what labour turnover is, before asking
them to calculate it. As with many calculations, if learners know what it is,
then they may be more likely to remember how it is calculated.
In small groups give learners a mini-case study with examples of
businesses with high/low/changing labour turnover figures. Each group to
discuss and analyse the impact of the labour turnover rates on the
business. Give them five minutes with each case study before moving on to
the next one.
Based on this analysis, learners formulate a brief written solution to the
labour turnover problems for one of the businesses looked at. (I)
For consolidation, include 9609/22 Jun 2019 Question 1(b) for a calculation
of labour turnover and a question about the disadvantages of high labour
turnover. (F)
Labour turnover on its own is a meaningless figure. In some industries,
turnover rate should be high, e.g. seasonal businesses, retail business –
whereas in other industries turnover should be low, e.g. managerial roles,
skilled industries. These are likely to be different in different countries so
examples that mean something to learners locally will be better.
www.tutor2u.net/business/reference/labour-turnover
33
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
Extension activity: learners complete the following essay in the style of a
Paper 1, Section B question,
‘Evaluate the possible impacts of high labour turnover on your
school/college’ [12 marks]
2.1.3 Recruitment
and selection
KC3 Decisionmaking
Recruitment of
employees: process
(job descriptions and
person
specifications) and
recruitment methods
(job advertisements,
employment
agencies, online
recruitment)
Selection methods:
curriculum vitae,
résumé, application
forms, interviews,
references, testing,
assessment centres
For a job of their choice, ask each learner to produce a job advertisement,
job description and person specification. Learners will also need to carry out
brief initial research to ensure these documents match the requirements of
the job they have chosen. (I)
Display the job advertisements on a noticeboard. Learners then choose one
(or more if time allows) jobs to apply for. They are then given the job
description and person specification for those jobs. If they are still
interested, they apply with a CV and covering letter. (I)
Learners assess the applications for the job they advertised and shortlist for
interview. Learners who do not receive job applications can prepare
interview questions. (I)
If time is available, job interviews can take place, with learners role-playing
the interviewee and interviewing panel.
Reduce or expand this activity according to the time available. As it is a
useful chance to teach life and general career skills as well you can if you
wish expand it to include:
 a member of staff (or business person) to sit in on some of the
interview panels
 a member of staff can provide brief candidate references to use in
shortlisting
 use real job ads from the newspaper or by typing ‘job application
forms’ in an internet search engine.
www.google.co.uk – type ‘examples of job descriptions and person
specifications’ into the images search.
Examples from previous examination papers:
 9609/22 Nov 2019 Q1 job description
34
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES


2.1.3 Recruitment
and selection
Internal and external
recruitment
EVALUATION
9609/22 Nov 2020 Q2 person specification
9609/21 Jun 2018 Q2 job advertisement (F)
Learners often assume that most if not all recruitment is external (recruiting
from outside of the business). However, there are many advantages to a
business of recruiting internally as well as disadvantages. Discuss the
differences between internal and external recruitment with learners giving a
clear definition of each.
www.tutor2u.net/business/reference/recruitment-internal-v-externalrecruitment has good definitions as well as a list of advantages and
disadvantages.
Divide a whiteboard into four quarters. Label one quarter with the following
title:
 advantages – internal recruitment
 disadvantages – internal recruitment
 advantages – external recruitment
 disadvantages – external recruitment.
Learners think of as many advantages and disadvantages as they can.
Build a comprehensive list on the whiteboard.
2.1.3 Recruitment
and selection
Employment
contracts
Learners undertake research on contracts of employment in their own
country and investigate the:
 legal obligations of employers to provide a contract/written
statement of particulars
 likely contents of a contract of employment
 advantages of a contract of employment (business perspective)
 advantages of having a contract of employment (employee
perspective). (I)
Learners produce a written report on their findings. (I)
In groups ask learners to share their finished reports, discussing the
differences and similarities in findings.
The contract of employment exists from the moment of employment, not
35
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
just when a written contract or statement of particulars is provided. The
contract puts requirements on the employer and employees, and this
should be explored in different contexts. The contents and specifics of a
contract (or written statement of particulars in some countries) will differ
from country to country.
For consolidation, 9609/33 May 2019 Q5 (AO4) (F)
Contracts of Employment | Factsheets | CIPD – some details about
contacts of employment in the UK
Employment contracts - GOV.UK (www.gov.uk) – UK government details
about contracts of employment
Employment contracts in the world: more similarities than differences ecovis.lt – article about the similarities between employment contracts
around the world.
2.1.4 Redundancy
and dismissal
The difference
between redundancy
(voluntary and
involuntary) and
dismissal (fair, unfair)
Learners research a local, national or international business that has made
its workers redundant (news articles are a good source for this) and write a
report including an explanation of:
 the reasons for the redundancies
 why this situation is redundancy not a dismissal
 the likely costs to the business of the redundancies (focussing on
quantitative and qualitative costs, e.g. financial and image)
 if the business is still trading, what are the benefits to the business
of the redundancies, e.g. technological economies of scale, higher
productivity etc. (I)
Give small groups one type of job (teacher, supermarket checkout operator,
football club manager etc.). For each role, the group explores the type of
misconduct which may result in a warning and the type of misconduct which
may result in dismissal. Each group reports back to the class about their
findings.
The difference between dismissal and redundancy is often misunderstood.
Terms like 'being sacked' or 'let go', show a lack of understanding. Learners
must be able to differentiate between the two and use the correct
terminology – for example, redundancy rather than dismissal must be used
in the context of cost-saving measures as it opens the door to further
36
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
analysis of the short-term costs to the business of redundancy versus the
possible long-term benefits.
There is no need for learners to know the details of any specific countries’
laws on unfair dismissal. However, an exploration of the laws in the
learners’ own country can be used as an extension activity and encourages
learning beyond the specification.
www.youtube.com – search for clips on unfair dismissal in different
countries.
2.1.5 Morale and
welfare
KC1 Change
The relationship
between HRM,
employee morale
and welfare in a
business including
the concept of worklife balance
Learners identify activities in their life which require time, e.g. school,
homework, revision, sport, family, meals, friends and sleep. They then draw
a timetable for the whole week, giving each day a column time of 24 hours.
Using the previous week for reference, they fill in the diary for the coming
week making sure every block of time is filled in. They then divide this
information into the percentage time they spend on the different areas of
their life. (I)
In pairs learners compare and contrast each other’s work-life balance:
 what are the major differences?
 what improvements could be made to achieve the learners’ life
objectives?
 what is getting in the way?
 how might they expect their work-life balance to change over the
course of their life?
 how does their work-life balance differ from their parents?
To put this in a business context, lead a class discussion on how much
responsibility a business has to consider the morale and welfare of the
workers it employs:
 what are the benefits of using HRM techniques to improve
employee morale and welfare?
 what are the costs to the business?
Finally, put learners into groups to prepare a leaflet outlining the importance
to a business and employees of other aspects of staff morale and welfare,
such as:
 bullying policies
37
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES



EVALUATION
staff consultative committees
flexible working
performance management processes.
Work-life balance is something that concerns learners as much as adults. In
many ways it is part of the 'growing up' process in terms of understanding
the shifting time demands that studying and work makes on people. Make
learners aware that their preferred work-life balance may influence their
career choices in the future. You can also extend this to look at occupations
where traditionally there is not a good work-life balance, such as:
 junior doctors
 teachers
 high-powered managers
 shift workers
 rock/pop musicians.
This topic also links well with the earlier leadership and motivation topic,
providing a good opportunity to refresh learning – to what extent do workers
want a business to consider their work-life balance, or are most workers
able to make their own choices?
www.mindtools.com/pages/article/newHTE_93.htm – wheel of life activity
For consolidation, 9609/13 Nov 2019 Q5a (AO3) (F)
2.1.5 Morale and
welfare
KC1 Change
The impact of
diversity and equality
in the workplace on a
business
Learners create a mind-map of the issues/areas they think that equality and
diversity cover, such as age, race, religion, etc. Relate this to the laws in the
country that learners live.
Learners analyse the benefits and costs to a firm of promoting diversity as a
written response to a given case study example. The benefits may include:
 greater pool of workers to choose from
 better pool of skills
 lower legal costs
 better business image.
The costs may include:
 higher recruitment costs
 longer recruitment process
38
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES


EVALUATION
greater training needs
communication barriers.
Learners investigate diversity and equality policies from other businesses.
Each learner finds two policies from different organisations and displays
them on the board for all to review.
Learners often want to explore the issue of discrimination and equality
further. It is important to emphasise the need to discriminate (on effort, on
ability, on qualifications etc.) but the importance of not discriminating on
characteristics which are illegal and/or do not impact upon the ability to do a
job.
The Key Concept of Change is important in the area of diversity and
equality. Discuss:
 how have businesses had to cope with a changing society?
 what issues are important now that perhaps were not considered
in the past?
 how can businesses make sure they are ready for changes in
legislation and society values in these areas?
www.legislation.gov.uk/ukpga/2010/15/contents – about UK Equality Act
2010
Equality, Diversity & Inclusion - YouTube – animation highlighting the
aspects of diversity and equality in the workplace
For consolidation, 9609/13 Nov 2019 Q5b (AO4) (F)
2.1.6 Training and
development
Different types of
training: induction,
on-the-job, off-thejob
Learners need to be aware of the different types of training and the benefits
and costs of each. Divide the group into three teams. Each team should
prepare a brief presentation to the rest of the group about their given type of
training:
 group 1 – on-the-job training
 group 2 – off-the-job training
 group 3 – induction training.
Once each team has presented, pose the following scenarios to the group
and ask them to discuss which type of training would be most appropriate
and explain why.
39
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES



EVALUATION
scenario 1 – a new employee has been employed by a
supermarket to work on the checkouts (tills). They have no
experience of this job
scenario 2 – the A-Level Business syllabus has changed and your
teacher needs to know the latest developments.
scenario 3 – an agricultural worker has been made redundant and
wants to retrain as an accountant.
For each of the scenarios, more than one type of training may be
appropriate. Learners analyse and discuss each type. Each team puts
forward the best arguments for their given type of training. The group can
then vote on which is most appropriate in each scenario.
Extension activity: learners think about their dream job (after they have
completed their education).
 what training do they expect and hope to be given?
 can they think about how they can get this training before starting
work, or to make themselves more employable?
Types of training - Training and development - Higher Business
management Revision - BBC Bitesize – a link to some basic details about
types of training.
Advantages and disadvantages of on-the-job and off-the-job training Training - Eduqas - GCSE Business Revision - Eduqas - BBC Bitesize –
analysis of types of training.
2.1.6 Training and
development
KC5 Innovation
The impact of
training and
development on a
business
Learners research at least four steps in their chosen career path, e.g. from
an entry point into a junior position after A Levels, right through to senior
management. At each step learners then investigate what training they
might need to progress on to the next step and consider why that training is
important and they could convince the business to pay for that training?
Learners write a draft letter to their line manager outlining the training they
need at a given stage and explaining the benefits to the business. They
should aim to convince their manager with the arguments they use. (I)
Learners swap letters with another learner to help improve the content. This
is a useful exercise for learners to focus on their own career goals and
40
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
training needs in context.
Training is an obvious area to link to Key Concepts of Innovation and
Enterprise. Discussions can focus on the value that a trained workforce can
make in:
 production
 quality
 new ideas
 service provision
 customer focus.
www.tutor2u.net/business/people/training_introduction.asp
The Importance of Employee Training - YouTube – introductory video on the
importance of training to a business.
2.1.6 Training and
development
KC4 Enterprise
KC5 Innovation
Employee
development to
encourage
intrapreneurship
Employee
development to
encourage multiskilling and flexibility
The difference between training and development is not clear cut and much
training also involves development (and vice versa). This section is about
how current employees can be developed to benefit a business, specifically
in terms of:
 intrapreneurship – the ability for employees to come up with new
ideas within a business
 multi-skilling – the ability for employees to be proficient in more
than one job role
 flexibility – the ability for employees to cope with different contexts
and scenarios.
The development of these areas is likely to involve the types of training
discussed earlier (on-the-job, off-the-job and induction), but the focus is less
about making an employee ready for a particular job and more about idea
generation and adaptability.
Learners research a job role or an employee (person they know) who has a
role which may require intrapreneurship and adaptability. This could be a
parent or relative, or a business-person who has some contact with the
school/college. Each learner should research the following areas:
 why is intrapreneurship important in this role?
 how has the employee developed these skills – was it from being
developed by the business or their own initiative?
41
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES




EVALUATION
why is it important for the employee to have many skills?
how has the employee developed these multiple skills areas –
was it from being developed by the business or their own
initiative?
why is it important for the employee to be flexible?
how has the employee developed this flexibility – was it from
being developed by the business or their own initiative?
Learners produce a report of their findings. (I)
Intrapreneurship: the Future for Organisations - CMI (managers.org.uk) –
an article about the importance of intrapreneurship
How to Be Flexible at Work - Career Skills From MindTools.com – article
about developing flexibility at work.
2.1.7 Management
and workforce
relations
KC6 Strategy
How cooperation
between
management and the
workforce can be of
benefit to both
In groups learners to role-play a meeting between workers and
management. Give them a fictional scenario where the workers have a
dispute against the management. Make it clear that while both sides must
put their case, the focus of the ‘meeting’ should be finding a cooperative
way forward.
Extension activity: divide each group into three, where the third set take
notes during the meeting then advise the ‘management’ and the ‘workers’
after the meeting on how they could have improved cooperation. If time
allows, the meeting could then be resumed after this feedback is given.
Learners to research actual national disputes between workers and
management (public or private sector). Using the theories developed,
learners should recommend ways in which cooperation between the
workforce and management could be achieved and outline the benefits to
both parties.
Extension activity: learners write a formal letter or presentation to both the
management and workforce with informed recommendations to encourage
cooperation, outlining the resulting benefits to both parties. (I)
The focus must be on identifying the benefits of cooperation to both parties.
Learners often have a tendency here to think more from a management
42
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
than workforce perspective, which you may need to address.
Getting workers to ‘sign up’ to a business strategy is often the key to
business success. This can be done through communication, democratic
leadership and a variety of other methods.
www.youtube.com/watch?v=Lx83q3mW0oo – an overview of employer and
employee relations.
Benefits of Labor-Management Collaboration - YouTube – benefits of
management and workforce cooperation.
2.1.7 Management
and workforce
relations
KC6 Strategy
The impact on
employers and
employees of trade
union involvement in
the workplace
including their role in
collective bargaining
In groups learners role-play a union negotiation or investigate past
local/national industrial disputes and design their role-play on one of these.
Lead a class discussion on the benefits to the business and employees of
collective bargaining.
The internet and textbooks are a good source of case studies for this
activity.
www.tes.co.uk/teaching-resource/Trade-Union-Roleplays-6111337/
(example online source for role-play activities)
For consolidation, 9609/31 Nov 2018 Q1 (AO3) (F)
2.2 Motivation
2.2.1 Motivation as a
tool of management
and leadership
KC6 Strategy
The need to motivate
employees to
achieve the
objectives of a
business
Discuss the importance of motivation and ask learners to consider what
motivates them. Learners should:
 draw a mind-map of the things that motivate them
 identify on this the most important motivators in their life
 indicate how these motivators can be used to help achieve their
own objectives in life – university, career, etc. (I)
The mind-maps can be made into posters and displayed on a wall. It can be
interesting to understand what motivates each learner – this can be used in
future teaching of individual learners.
For the final discussion, look at a specific business with which learners are
43
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
familiar, e.g. a nationwide chain of shops (supermarkets, electrical retailers,
etc.) or an international business (Google, Microsoft ,etc.).
This is a good point to discuss how motivation can have a direct effect on
the profits of a business. It may depend on the nature of business (for
example, employee motivation may be essential in a service sector
business, but less important in a capital-intensive manufacturing business).
By looking at a context such as a restaurant, learners can discuss how a
motivated workforce creates more value in the food and service provided
than an unmotivated one.
Class discussion on how useful it is for a business to understand the things
that motivate workers: How does it make it easier to achieve the business’s
objectives?
2.2.2 Human needs
A simple explanation
of human need
Give each learner a simple ‘stick’ picture of a person and ask them to spend
five minutes labelling the picture with human needs. (I)
How human needs
may or may not be
satisfied at work
Learners then pair up with another learner to share their ideas and identify
those needs which could be satisfied at work and those may not. Each
learner adds their partner’s ideas to their own picture.
Each pair then joins another pair. Give these groups larger pieces of paper
with a stick person drawn on. Each group discusses their ideas so far, adds
the best ones to the larger piece of paper, then adds further thoughts on
how meeting needs can be achieved in the workplace.
Each group presents their picture and the class uses these to develop and
label a larger picture. Make sure the discussion focuses on the motivations
which can be satisfied by/through work and what the most effective
methods are that businesses can use. Some ideas of ‘basic’ human needs
to get learners started are food, water, sleep, shelter, safety. Make sure
they also look at the 'higher' needs such as status, creativity and
recognition.
en.wikipedia.org/wiki/Fundamental_human_needs
fundamental human needs
– a classification of
44
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
www.youtube.com/watch?v=La9WX359KcY – a video clip about what
motivates people at work and at home.
Put these starting suggestions around the room to facilitate discussion. This
would be an ideal activity to use an interactive whiteboard (if available).
2.2.3 Motivation
theories
The ideas of the
main content
theories (Taylor,
Mayo, Maslow,
Herzberg and
McClelland) and
process theory
(Vroom)
In small groups each one researches one of the theorists listed opposite
and produces a presentation for the whole class. Each presentation should
cover:
 brief background of the theorist
 outline of their theory
 an example of how their theory can be applied
 advantages of the theory
 disadvantages of the theory
 a hand-out for the class.
By the end of the presentations every learner should have a good
understanding of each theory (I).
Make sure learners focus on the most important theories for each theorist:
 Abraham Maslow's Hierarchy of Needs
 Frederick Taylor's Scientific Management
 Elton Mayo and The Hawthorne Effect
 Frederick Herzberg's Two Factor Theory
 David McClelland's Managerial Needs
 Victor Vroom's Expectancy Theory.
Wikipedia, YouTube, Tutor2U and Bized websites all provide good starting
points for learner research. Many of the motivational theorists suggest
higher aims including innovation. Why is innovation important to a
business?
2.2.4 Motivation
methods in practice:
financial motivators,
non-financial
motivators
The theories in
practical situations
Divide the class into six groups, one for each theorist introduced in the
previous activity. Each group should use their theorist’s theory to explain
how the class can be motivated and then write a sample letter to the Head
Teacher explaining how their theory suggests learners within the school
should be motivated.
KC2 Context
45
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
In pairs learners debate the issue: ‘Does money motivate?’ One learner
argues that it does and finds aspects from the six motivational theories to
support their case. The other learner takes the opposite view and backs up
their ideas with appropriate aspects from the theories. The advantage of
focussing the first step in this activity on the school learning environment is
learners will focus better on non-financial motivators.
Every theorist has some aspects that suggest that money is an important
motivator. Learners often focus on higher needs and forget that most
workers, no matter how much they love their job, would not work without
money.
For consolidation, 9609/23 Nov 2018 Q2(a)(ii) (F).
2.2.4 Motivation
methods in practice:
financial motivators,
non-financial
motivators
KC2 Context
Different payment
methods: time
based, salary, piece
rates, commission,
bonuses, profit
sharing,
performance-related
pay, fringe benefits
Develop a number of scenarios of job roles and different payment methods
and separate the pay and job role information. Put learners into groups and
ask them to match the workers to the most appropriate method of financial
motivation in each scenario. Discuss each scenario as a whole class and
decide on the most appropriate method for each. Some good scenarios and
payment methods to give each group are:
 time-based (plumber, painter, mechanic, tutor)
 salary (teacher, manager, civil servant)
 piece rates (production worker)
 commission (salesperson)
 bonuses (banker, manager)
 profit-sharing (manager)
 performance-related pay (accountant, production worker,
manager, teacher).
This is an excellent opportunity to discuss the skills of analysis and
evaluation. There is no 'right' answer to this exercise, only more appropriate
solutions. If a learner can present a logical case in context for the use of a
financial motivation method then this should be rewarded. Learners often
struggle with this and it is important they realise that two learners may
present different ideas, but both still be correct.
www.youtube.com/watch?v=Uh8Gyy_myUY – video outlining financial
methods of motivation.
46
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
Employee Motivation: Financial and Non-financial Techniques of Staff
Motivation (businessmanagementideas.com) – article on financial and nonfinancial methods of motivation.
2.2.4 Motivation
methods in practice:
financial motivators,
non-financial
motivators
KC2 Context
Different types of
non-financial
motivators: training,
opportunities for
promotion,
development, status,
job re-design, team
working,
empowerment,
participation, job
enrichment
Ways in which
employees can
participate in the
management and
control of business
activity
Go back to the activity at the beginning of this topic where learners
identified human needs. From the list of human needs they created learners
identify those which can be met through money (usually the basic needs)
and then make a list of needs which cannot (or cannot easily) be met
through financial reward.
Give each group a list (with explanations if necessary) of non-financial
motivators. Each group should identify (with explanation) the best nonfinancial motivator for each 'higher' need. Discuss as a class and where
groups have decided to use different non-financial motivators for the same
need, discuss the most appropriate method. Introduce the idea of employee
participation. Learners should:
 discuss which human needs can be met through employee
participation in the management and control of business activity
 debate the advantages and disadvantages of employee
participation to the business
 compare and contrast this to the advantages and disadvantages
to the employees.
This again provides an ideal opportunity to demonstrate the skills of
analysis and evaluation by having learners argue for the most appropriate
method. If two learners can put forward arguments for different methods, a
third learner could briefly summarise the arguments and come to a
judgement based on the weight of the arguments.
Basic notes on non-financial motivators:
www.tutor2u.net/business/gcse/people_motivation_non_financial_rewards.h
tm
Online quizzes about motivation:
www.psychologies.co.uk/tests/what-motivates-you.html
Self-Motivation Quiz - Goal Setting Tools from MindTools.com
What motivates you - Take the Motivation Test | See My Personality
2.3 Management
47
Scheme of Work
WEEK
TOPIC
8-15
2.1 Human resource management (HRM)
2.3.1 Management
and managers
KC6 Strategy
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
Traditional manager
functions: planning,
organising, directing,
controlling
As an introductory activity, pick a job that could be done by either a person
or a machine, e.g. making a table. Give learners five minutes to think of the
advantages (unique attributes) a person has compared to a machine, and
then ask for feedback. (I)
The role of
managers: Fayol,
Mintzberg
Learners think of as many things that a manager has to do when managing
employees and categorise these into:
 planning
 organising
 directing
 controlling.
The contribution of
managers to
business
performance
EVALUATION
Follow this up with the video clip on Mintzberg to introduce learners to the
functions of management. www.youtube.com/watch?v=_NRWtd_SiU8 –
video clip on Henry Mintzberg.
Video clips about Henri Fayol’s management functions.
Henri Fayol's Principles of Management – YouTube
Fayol's Principles of Management - Simplest Explanation Ever – YouTube
Learners research management by interviewing a local manager (parent,
relative, friend etc.), or by doing equivalent internet research. Learners find
out what the manager does to carry out the following management
functions:
 setting objectives and planning
 organising resources
 directing and motivating staff
 coordinating activities
 controlling and measuring performance.
Select a job that has some obvious advantages when done by a person
such as: creativity, ability to make decisions, flexibility, enthusiasm. There
are many good opportunities to discuss the key concept of management
throughout this section. The individual functions of management also add
up to create a more holistic strategic approach. The service sector depends
on people, and 'tipping' is an example of an employee creating value
beyond the price of a product.
2.3.1 Management
and managers
Management styles:
autocratic,
Introduce the four management styles (autocratic, democratic, laissez-faire
and paternalistic) and ask for examples of jobs where each leadership style
48
Scheme of Work
WEEK
TOPIC
8-15
2.1 Human resource management (HRM)
KC3 Decisionmaking
OBJECTIVES
democratic, laissezfaire, paternalistic
TEACHER/PUPIL ACTIVITIES
EVALUATION
is predominant. Divide the class into five teams, giving four of the teams a
different leadership style. The fifth team are observers. The Autocratic,
Democratic and paternalistic groups should each have a leader.
Give each team a road map. The aim of the task is to find the shortest route
between two places and to measure the route using a piece of string.
 give the leader of the Autocratic group a set of clear instructions.
The leader conveys the instructions to the group and gives them
defined roles
 give the Democratic group several possible ways of finding the
route. The leader asks the group for opinions on the best way and
then decides which way to use
 give the Paternalistic group several possible ways of finding the
route. The leader decides on the best way that they think will be
best for the group without discussion
 give the laissez-faire group the resources (map, string) and aim of
the task, but no further assistance
 members of the observation group observe the four groups and
make notes on each leadership style.
Bring the group back together for a discussion on the advantages and
disadvantages of each method used. Some good examples of roles include:
 fire service (autocratic)
 Politician (democratic)
 education (paternalistic)
 artist (laissez-faire).
For the team activity, any detailed road map of any region or country will do
– a 'book' type road map adds an extra level of complexity (assuming the
starting point and destination are on different pages). The leadership styles
the observation group should look out for include:
 speed of decision making
 creativity
 motivation
 group cohesion.
The most likely ways to increase creativity and innovation are through a
less regimented style of leadership. Some investigation into well-known
entrepreneurs and the environment that led to their innovation could form
49
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
the basis of further discussion.
en.wikipedia.org/wiki/Leadership_styles
www.google.co.uk – type ‘leadership styles’ into images search.
Autocratic, democratic or laissez-faire - what’s your leadership style? |
Virgin – article on leadership styles
www.tutor2u.net/business/reference/leadership-management-stylesrevision-quiz – online slideshow about leadership styles
2.3.1 Management
and managers
McGregor’s Theory X
and Theory Y
managers
Learners write on slips of paper the traits or characteristics of
leaders/managers they have observed, e.g. from school, a familiar
workplace or a film/TV programme. Draw a horizontal line on the board. At
one end write ‘Theory X’ and at the other ‘Theory Y’. Identify and write on
the board the extremes of behaviour that exist at either end of the spectrum
according to McGregor.
Learners read out one characteristic they identified at the start of the task
and stick it on the spectrum with reference to McGregor's extremes of
Theory X and Theory Y, explaining why they chose to place it where they
did. This should be a quick activity, no more than 15-20 minutes in total.
Learners pick one of the characteristics from the board they did not add
themselves and explain in a brief report:
 why it is more of a Theory X or Theory Y characteristic
 whether or not the leader would benefit from changing their
approach. (I)
Understanding that McGregor was writing about management perspectives
is important. Too often this is taught as a motivational theory, or as ‘Theory
X is bad’ when a good manager may adapt to the situation appropriately.
en.wikipedia.org/wiki/Leadership_styles
www.google.co.uk – type ‘leadership styles’ into images search
www.youtube.com/watch?v=yR03d9gN1nw – a quick introductory video on
McGregor's theories
Discussion over which of McGregor’s leadership styles is most likely to
engage with the Key Concept of Change? This can also be linked to the
Key Concept of Entrepreneurship.
50
Scheme of Work
WEEK
TOPIC
OBJECTIVES
8-15
2.1 Human resource management (HRM)
TEACHER/PUPIL ACTIVITIES
EVALUATION
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
51
Scheme of Work
3 Marketing (AS Level)
WEEK
TOPIC
16-23
3.1 The nature of marketing
3.1.1 The role of
marketing and its
relationship with
other business
activities
KC2 Context
KC6 Strategy
OBJECTIVES
Marketing objectives
The link between
marketing objectives
and corporate
objectives
TEACHER/PUPIL ACTIVITIES
EVALUATION
In groups ask learners to think about what marketing is. Learners use
whatever resources are available to research this but should cover more
than one source. Groups to use this research and come to their own
definition. Follow this with a class discussion on the definitions the groups
have produced.
Hand out a number of different advertising and promotional methods. Each
group discusses the objective behind the promotion.
Groups share their findings with the class who discuss the suggestions and
draw up a definitive list of marketing objectives.
Hand out a case study example for learners to work through to show how
marketing objectives link to corporate objectives. (I)
Learners are likely to come up with varied definitions, but the main aspects
involved should be:
 identification of needs
 satisfaction of needs (at a profit?)
 regeneration of needs.
Try to use a combination of promotional methods so that learners do not
just think that marketing is about advertising. The range of methods could
include:
 direct mail
 TV advert
 radio advert
 merchandise
 sponsorship of local team.
https://marketinginsidergroup.com/strategy/what-is-marketing/ – an article
about marketing with some basic pictures to introduce different types of
promotion.
www.youtube.com/watch?v=8Sj2tbh-ozE – video introducing marketing.
52
Scheme of Work
WEEK
TOPIC
16-23
3.1 The nature of marketing
3.1.2 Demand and
supply
KC2 Context
OBJECTIVES
The factors
influencing the
demand for and
supply of the
products of a
business
TEACHER/PUPIL ACTIVITIES
EVALUATION
Divide the class into an even number of groups. Half the groups focus on
demand, the other half on supply. Give each group a product. The same
product should be given to one ‘demand’ group and one ‘supply’ group.
Groups list the factors they can think of which affect either the supply or
demand of their product respectively.
Collate all the identified factors together into a definitive list of factors which
affect supply and demand. Identify ones that differ from product to product.
The products should give plenty of scope for bringing out all the factors
influencing supply and demand. Some good examples include:
 fruit
 clothes
 water
 hairdressing
 oil
 cars
 public transport.
www.google.co.uk – type ‘supply and demand’ into images search for other
useful graphs and visual images.
For consolidation, 9609/22 Nov 2020, Q2c (factors influencing demand
AO3) and 9609/12 May 2019, Q1 (factors influencing supply AO2) (F)
Extension: learners investigate the main factors influencing the supply and
demand for your school/college. In general supply factors tend to be more
challenging, so this can be used to differentiate your group by giving some
learners demand factors and some supply factors to investigate. Learners
analyse what they consider to be the two most important factors and then
evaluate, by coming to a reasoned judgement, which of the two is most
important in the context of your specific school (I).
3.1.2 Demand and
supply
Interactions between
demand, supply and
price
In groups learners think about the factors which would affect the demand
and supply of a product. Each group focuses on a different product and
then feeds back to the whole class.
Class discussion about how important the factors the groups have found
53
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
are compared to changes in price. Is price the most important factor for the
given products? The products should include a combination of different
sectors (primary, secondary and tertiary).
Extension activity: learners identify the shift in the demand and supply
curve from a change in the factors. This can then be linked to a change in
equilibrium price.
It is rare in this specification for learners to need to draw demand and
supply graphs. The most important aspect is to be able to analyse the
effects on a business of changes in:
 price – causing an extension or contraction in demand/supply and
a change in quantity supplied/demanded
 changes in demand – causing a change in equilibrium price and
quantity
 changes in supply – causing a change in equilibrium price and
quantity.
3.1.3 Markets
KC2 Context
How markets may
differ: consumer and
industrial markets
Learners select a product which can be sold into both the industrial and
consumer market. They then research and produce a written report on the
different ways in which that product is marketed to these different markets.
The report should include:
 a classification of the markets that the product is sold to
(consumer and industrial)
 is the product design different for the different markets?
 is the price different?
 is the packaging different?
 how might the promotion methods be different?
 where/how is the product sold to the different markets?
Some good examples of products which are easily accessible for the
industrial and consumer market are:
 building/DIY tools
 hairdressing implements
 cooking utensils
 vehicles.
Too often learners think that customers must be individuals, whereas many
54
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
customers are internal and/or industrial. Being able to adapt to the context
given and focus on what that particular customer wants is an essential part
of business.
www.tutor2u.net/business/marketing/market_types.asp and
www.tutor2u.net/business/reference/consumer-and-industrial-products –
notes about industrial and consumer markets
www.digglescreative.com/blog/industrial-marketing-vs-consumer-marketingwhat-s-the-difference.html – article about the main differences between
consumer and industrial markets
3.1.3 Markets
KC2 Context
How markets may
differ: local, national
and international
markets
Many products and services are sold in local, national and international
markets. Choose a product or service which learners will be familiar with in
each of these contexts. Some good examples may include:
 McDonalds
 Coke
 Netflix
 BMW.
Find (or ask learners to find) examples of promotion from this business in a
local context, a national context and an international context. For example
(using McDonalds):
 local – a local McDonalds is likely to promote on billboards and
posters in the surrounding area of a local restaurant. Many
McDonalds restaurants also sponsor litter bins
 national – a national TV advertisement for McDonalds is likely to
run nationwide campaigns like McDonalds monopoly and the
limited time product offers
 international – The MCDonald’s logo (the golden arches) is
thought to be one of the most recognised symbols in the world –
generally unchanged from country to country.
Learners analyse how and why the marketing differs for different markets.
What is the nature of each market that might make the promotion
appropriate?
Learners choose a product which is sold to a local market, a national
market and an international market. For each market they identify the
55
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
specific needs to the market, focusing on how this might affect the
businesses decision making and marketing (I).
3.1.3 Markets
KC6 Strategy
The difference
between product
orientation and
customer (market)
orientation
It is sometimes assumed that good marketing is always customer orientated
(based on the customers’ needs) and firms which are product orientated are
antiquated. However, Apple is a good example of a firm using both
customer and product orientation.
The film ‘Steve Jobs’ (2015) has good examples of the differences between
customer and product orientation and can be a useful starting point for
learners. www.helpscout.com/blog/why-steve-jobs-never-listened-to-hiscustomers/ – article about Steve Jobs.
Learners should think about a technological product that they use. Good
examples include:
 smartphones
 watches
 laptops/computers.
Based on the chosen product, what advances have been made because
the customer demanded it? (customer orientation) and what advances have
been made because of a change in technology? (product orientation).
Extension activity: a large supermarket can be a good basis for
discussing customer and product orientation. Much of the layout of a large
supermarket is customer orientated (for example the placement of the most
popular items at eye level, the placement of impulse buys near checkouts
etc.). However, some aspects of the layout will be determined by the
product (for example the bulkier items are often nearest the stockroom and
in store bakeries are wherever there is the space needed for an industrial
kitchen). Learners investigate a local shop and work out what aspects of the
shop are customer orientated and which are product orientated (I).
For consolidation, 9609/12 Oct 2017 Q4 (AO2) (F)
3.1.3 Markets
KC1 Change
Measurement of
market share and
market growth
As a class, analyse a market where there are some well-known businesses
competing against each other. Discuss the market share of each business
and how the figures may have been compiled.
56
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
The implications of
changes in market
share and market
growth
TEACHER/PUPIL ACTIVITIES
EVALUATION
Learners compile a factsheet of the changes in market share over a time
period, e.g. on a pie chart and the market growth over a time period, e.g. on
a line graph. Based on the compiled data, learners write answers to the
following questions:
 identify the major trends in market share and market growth
 explain how the market leader may have reacted to the trends
 analyse the impact of the change in market size on one of the
businesses
 analyse the problems of measuring the market share
 evaluate the usefulness of the data to one of the businesses. (I)
The data can be researched as a group or the figures prepared in advance.
Some good examples of markets to use may be:
 soft drinks market
 fast food market
 supermarket industry
 social media providers
 TV/internet providers.
The data can be turned into a data response question using the questions.
Care should be taken to use businesses and time periods where there is
enough data and changes to analyse and evaluate. Looking at data over
time is one element of change that a successful business must not only
cope with but respond to. Using market data to identify change and then
suggesting how to cope with this change will help learners understand the
dynamism of a business and its environment.
For consolidation, 9609/11 May 2020 Q5a (AO3) (F)
3.1.4 Consumer and
industrial marketing
KC2 Context
The classification of
products
How marketing might
differ for consumer
products (B2C –
business to
consumer) and
Link back to 3.1.3 (classification of markets). In this section the focus is on
the characteristics of the market and how the marketing may differ.
Investigate a product which could exist in a consumer and product market,
for example:
 a pen – often sold in the consumer market as a stationery item –
sold in small packs (sometimes as a pack of one) and the focus of
the marketing is likely to be on the performance of the pen to an
individual
57
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
industrial products
(B2B – business to
business)
TEACHER/PUPIL ACTIVITIES

EVALUATION
also sold in industrial markets, usually in much bigger packs and
the focus of the marketing is likely to be the price per unit.
There are many more examples, such as:
 laptops/computers
 property
 catering.
Learners find a product which is marketed towards both the consumer and
industrial markets and explain how the marketing differs in each market.
Learners report back as a presentation or written report. (I)
The introduction (lines 1-11) of the case study used in 9609/31 Oct 2017
(Kwik Karrier Services (KKS)) provides a good context for discussion.
Learners could use this as a basis for discussing how KKS’s marketing may
differ for each of these markets. (F)
3.1.5 Mass
marketing and niche
marketing
KC2 Context
The features of mass
and niche markets
Discussion on the difference between niche and mass markets, covering
examples of industries which include both techniques.
The advantages and
disadvantages of
mass marketing and
niche marketing
In pairs, learners look at two businesses with similar products. One should
be a niche market business and the other a mass market business. Using a
large sheet of paper, each pair produces a poster (divided into four
segments) identifying the benefits/limitations of each business (one
category per section). Some examples of products where there are niche
and mass market businesses include:
 food and drink
 clothes
 furniture.
www.youtube.com/watch?v=R1wigPubZ5g – video looking at the
differences between mass and niche marketing in the agricultural industry.
3.1.6 Market
segmentation
Methods of market
segmentation:
geographic,
demographic and
psychographic
Use a number of magazine front covers to analyse different market
segments (this can also be done with digital magazines/publications –
google image search is a good place to find these). Look at each magazine
in terms of the different market segments that the magazine is aimed at.
Find examples of geographic, demographic and psychographic
segmentation.
58
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
The advantages and
disadvantages of
market segmentation
TEACHER/PUPIL ACTIVITIES
EVALUATION
Learners design their own magazine cover on a single theme but with
different versions targeting different market segments. They write a brief
report, analysing the benefits and limitations of targeting a specific
segment. (I)
Magazines are a good resource for looking at market segmentation
because there are so many different ones on the market. These do not
need to be bought, as many examples are available on the internet.
www.youtube.com/watch?v=pCLQkgcjMjY (challenging as it goes beyond A
Level syllabus requirements)
For the magazine covers, learners use a single theme and focus on how to
target it to many different market segments. Useful themes include:
 fashion
 food and drink
 travel.
This is an opportunity for learners to be creative and come up with a unique
magazine cover that fulfils the purpose for the market segment.
For consolidation, 9609/22 Mar 2018 Q2d (AO4). This can be completed as
a written assignment or a class discussion. The focus should be on the
importance of market segmentation to LC, not just a generic answer. (F)
3.1.7 Customer
relationship
marketing (CRM)
The aims of CRM
The costs and
benefits of CRM
Marketing is sometimes thought of as a communication between the
business and the customer. However good marketing involves two-way
communication, and this is the basis of CRM. Learners think about how
they would set up a café or shop in their school/college. Why would it be
important to develop a relationship between the business and the
customers?
It is likely that learners have had some interaction with CRM, but may be
unaware of it. For example:
 after sales service – how does this improve (or sometimes
worsen) the relationship between the customer and the business?
 feedback communication from the customer to the business (for
59
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
example telephone numbers, online surveys, and email addresses
that are often found on packaging) – hoe does this improve the
relationship?
Learners find a product or a service where there are clear routes for CRM
(such as those above) and list the costs and benefits to the business of
CRM. (I)
Learners explain their list to the rest of the group and discuss which product
or service most benefits from CRM and explain why. Are there any
products, services or business which may not benefit from CRM?
www.market-recruitment.co.uk/what-is-customer-relationship-marketing/ –
article about CRM
www.superoffice.com/blog/relationship-marketing/ – article about the
differences between ‘traditional’ marketing and CRM and examples of ways
in which a business can introduce CRM.
Extension activity: www.youtube.com/watch?v=hoO5ZdKl2qE – different
methods of CRM, relatively complex and beyond the syllabus requirements.
For consolidation, learners should answer the following question (the
context can be changed to a local or national business that may be more
accessible to learners). ‘Evaluate the importance to Samsung of customer
relationship marketing when launching a new smartphone.’ [12 marks]
(AO4). (F)
3.2 Market research
3.2.1 The purposes
of market research
KC1 Change
KC2 Context
Identification of main
features of a market:
size, growth,
competitors
Identification of
customer and
consumer
characteristics,
Using the learning from the previous topic on market segmentation, give
learners a specific market segment. Discuss how the given market may be
described in terms of:
 size of the market (by sales, volume, customers)
 whether the market is growing
 who the main competitors in the market are?
Learners think of ways to research who has the identified characteristics,
wants and needs of that segment and produce a written plan for conducting
this research. Some good examples of market segments could include:
60
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
profiles, wants and
needs
TEACHER/PUPIL ACTIVITIES



EVALUATION
the car market – segments include; families, business commuters,
environmentally friendly
the coffee market – segments include; grab-and-go (takeaway,
premium (luxury), drink at home
the tablet computer market – segments include; industrial,
consumer, children.
Market segments chosen should reflect local and national characteristics
that learners can relate to.
3.2.2 Primary
research and
secondary research
The distinction
between primary
research and
secondary research,
and the main
features of each
Groups of learners prepare a presentation for the whole class about market
research. Give each group a different method and information source so
collectively all the primary and secondary methods are covered. Each
presentation should include:
 whether it is primary or secondary research
 explanation of the method/source
 if possible, a practical example, a role-play or some examples of
the data collected
 the advantages of the method/source
 the disadvantages of the method/source.
Make sure all the following areas are covered between the different groups
for this activity:
primary research methods:
 focus groups
 surveys.
Secondary research information sources:
 printed
 paid-for
 web-based.
www.bbc.co.uk/bitesize/guides/z6y9rj6/revision/1 – some pages on
methods and sources of market research – good as an introduction
www.mymarketresearchmethods.com/primary-secondary-market-researchdifference/ – article about the difference between primary and secondary
market research.
3.2.2 Primary
Usefulness of data
Pick a market which learners are likely to be able to conduct some primary
61
Scheme of Work
WEEK
TOPIC
16-23
3.1 The nature of marketing
research and
secondary research
OBJECTIVES
collected using
primary research
methods
TEACHER/PUPIL ACTIVITIES
EVALUATION
market research. It should be one which learners are familiar enough with
the market. Some examples may include:
 soft drinks market – for example a newly released flavour
 a newly released APP – for example a popular game.
In groups learners research the market using the range of primary
techniques from the previous section. Each group compiles their findings
and presents it to the rest of the class. (I)
Learners should discuss the usefulness of their research. In particular focus
on:
 what problems did they encounter when researching the product?
 was it easy to get the data? If not, why not?
 how relevant is the data? Does it represent the whole market?
 how could their research be improved?
For consolidation, 9609/22 Mar 2020, Q2c (AO3) (F)
3.2.2 Primary
research and
secondary research
3.2.3 Sampling
Usefulness of data
collected from
secondary research
sources
Use a similar activity as used for primary market research. If the group is
big enough, these can be run concurrently.
The need for and
limitations of
sampling
Divide the class into three groups. Each group conducts a small piece of
market research (one question) using a given sampling method from the
following list and records the answers:
 random: learners stand in a public area of the school/college and
ask random people the question
 stratified: the school/college is divided into year groups (Year 7,
Year 8 etc.) and then by gender (if school is mixed gender). This
gives proportions for each strata of the sample. Their sample
should represent the correct proportions for each strata
 quota: learners divide the population of the school into quotas of
ages. The sample should include a specific number of 11-yearolds, 12-year-olds etc.
For consolidation, 9609/22 May 2019 Q2c (AO3 – covers both primary and
secondary) (F)
Extension activity: if there are enough learners in the class, assign each
group an observer whose role is to identify the advantages and
62
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
disadvantages encountered by the researchers. Groups feed back to the
class, including the appropriateness and limitations of the method they
used.
Learners often remember random and quota sampling, but struggle with
stratified sampling, therefore it is worth spending longer on this method.
There are only two reasons for a business to use sampling. It is quicker and
it is cheaper. Learners need to understand this.
Choosing a sampling method is about understanding your customers. For
many businesses, their customers share characteristics and an
understanding of these allows for better sampling.
3.2.4 Market
research data
KC1 Change
KC2 Context
The reliability of the
data collected
Analysis of
quantitative and
qualitative data
Interpretation of
information
presented in tables,
charts and graphs
Using the data gathered on sampling from the previous activity, ask the
class to discuss the following questions:
 how reliable is the data that was obtained?
 what could have made the data more reliable?
 what does the data tell us about the school population? (this
obviously depends on the question asked)
 how could a business use this data to develop a marketing
strategy?
Extension activity: although it is not necessary for learners to put data into
charts, as an extension activity, learners can present the data in an
appropriate way.
Extension activity: learners analyse how the method of data collection
could be improved. They could also repeat the research using the improved
method and analyse the data. Working with a simple one-question piece of
research (as used in the previous activity) will provide enough data as long
as the question is quantifiable (i.e. provides a range of numeric data).
Market research data on many industries for learners to analyse can be
found by doing an internet search or in textbooks.
3.3 The marketing mix
3.3.1 The elements
The 4Ps: Product,
The marketing mix is like a recipe with the elements of product, price,
63
Scheme of Work
WEEK
TOPIC
16-23
3.1 The nature of marketing
of the marketing mix
(the 4Ps)
OBJECTIVES
Price, Promotion,
Place (distribution
channels)
TEACHER/PUPIL ACTIVITIES
EVALUATION
promotion and place given different importance depending on the marketing
objectives, e.g. for a convenience store, location (place) is the most
important. Demonstrate this in a class discussion by showing for given
products or services, how changing the elements of the mix leads to
different outcomes/market segments targeted.
Class discussion focusing on one of these products/services, e.g. holidays,
smartphones, radio/TV channels, chairs. Allocate a product or service to
learners (or invite them to choose one) and ask them to show how product,
price, promotion and place can be manipulated to hit a totally different
market segment. Learners then demonstrate or present their ideas to the
class.
In groups, give each one a product/ service and ask them to pick randomly,
e.g. from a hat one market segment. Each group then comes up with a
marketing mix to target the market segment and presents their ideas to the
class. One of the misconceptions that learners often have is that promotion
is the most important element of the marketing mix (or the only one). This
should be addressed by using examples of products and services where
promotion is of less or little importance compared to the other 3 ‘P’s.
Examples could include:
 utility businesses where price is often the most important aspect
 convenience stores, where placement is the most important
 large businesses such as Amazon where it may be any number of
issues, such as price comparison, speed of distribution, availability
etc.
www.mindtools.com/pages/article/newSTR_94.htm
www.investopedia.com/terms/f/four-ps.asp
The marketing mix is all about customer focus. Learners who merely learn
the components and use them without the context of the customer needs
will find that their understanding lacks context and therefore has limited use.
3.3.2 Product
KC5 Innovation
The difference
between goods and
services
Bring in any product that has a label that can be easily removed to make
the product anonymous. Put learners in groups to for a ‘Design a product’
challenge. Each group designs a product for a specific target market. The
product can be anything but should meet the needs of the target market
64
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
Tangible and
intangible attributes
of products
(this can be based on research if time permits). Learners design the
label/box to promote the product characteristics and USP (Unique Selling
Point). The best product can be judged.
The importance of
product development
Learners write a report of the design and USP of the product to aid the
judging process. This should include the tangible and intangible attributes of
the product, how the product may be developed in the future and how it is
different from what is currently available (I)
Product
differentiation and
unique selling point
(USP)
3.3.3 Product
portfolio analysis
KC6 Strategy
TEACHER/PUPIL ACTIVITIES
Product life cycle and
decisions about
extension strategies
EVALUATION
A good source of products is cheap cans from the supermarket or boxes of
tissues. The focus of this activity needs to be the product design not the
promotion through the label – judging should take this into account. This will
give learners an opportunity to innovate in terms of product design. Without
innovation in their products most businesses will face declining sales and
eventual failure.
If possible, take learners to a shop which carries a range of the same
product. Some good examples include:
 a convenience store that stocks different types of chocolate bar
 a toy store that stocks different types of board games
 a furniture store that stocks different types of sofas.
Learners produce a brief written report identifying a product from the
available range at each stage of the product life cycle. They do not need to
be correct, but must have evidence to back up their findings (i.e. 'just
launched', 'final savings', 'number one for 20 years' etc.)
Learners plot these products on a product life cycle diagram and present
their reports to the class. (I)
Use these presentations for a wider class discussion in which learners build
a picture of the portfolio of the shop, analyse the range/portfolio of products
and assess the benefits and limitations of the identified portfolio. In groups
learners examine one of the products in the maturity or decline stage and
decide on an extension strategy. Each group presents its ideas to the class.
If a trip cannot be arranged, then a website for a local business can provide
similar opportunities.
65
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
A product portfolio must be managed, it does not happen without effort. This
is an opportunity to show how businesses make choices over their product
portfolio and show how management is not just about people but permeates
every area of business activity.
3.3.3 Product
portfolio analysis
Boston Matrix
analysis and its uses
In groups give each one a business which has a range of different products
in the same market, such as:
 mobile phone manufacturers, e.g. Apple, Nokia
 chocolate manufacturers, e.g. Cadbury, Hersheys
 clothes producers, e.g. Levi's, Calvin Cline
 car makers, e.g. Kia, Ford.
Using the Boston Matrix, each group places the products from their portfolio
into each quadrant. There should be at least one ‘star’, ‘question mark’ and
‘cash cow’.
Extension activity: learners find examples of ‘dogs’ (products which have
been/should be discontinued). As a class, look at a product that has
recently been launched locally. This should be a product that started as a
question mark (as opposed to many pieces of technology which often have
so many pre-orders that they rarely start with a low market share). Learners
come up with a strategy to move the question mark into being a star.
Repeat this activity for a product which is already a star, asking learners to
devise a strategy to move it to a cash cow. Some textbooks will use the
term 'problem child' instead of 'question mark'. Either term is acceptable.
www.slideshare.net/9579764806/bcg-matrix-with-example (online
presentation on Boston Matrix)
3.3.3 Product
portfolio analysis
KC6 Strategy
Impact of product
portfolio analysis on
marketing decisions
Using the research tasks form the previous sections, learners discuss how
the data they collected might be used by the business. In particular focus
on:
 use of product portfolio analysis to inform new product decisions
 use of product portfolio analysis to inform extension strategies
 use of product portfolio analysis to inform decisions about the
withdrawal of a product
 use of product portfolio analysis to decide on promotion, place and
pricing decisions (links to the other three P’s of the marketing
66
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
mix).
For consolidation, 9609/22 Nov 2020 Q1(b)(ii) (AO2) (F)
3.3.4 Pricing
methods
KC6 Strategy
Objectives and
usefulness of
different pricing
methods:
competitive,
penetration,
skimming, price
discrimination,
dynamic, cost-based
and psychological
Examples of all the pricing strategies are found in everyday life. Learners
find at least one example of the following strategies and discuss the value
of each strategy:
 competitive, e.g. supermarkets
 penetration, e.g. a new café
 skimming, e.g. new gaming consoles
 price discrimination, e.g. public transport
 dynamic, e.g. gym membership
 cost-based, e.g. mechanics
 psychological, e.g. bargain shops.
To make this easier, do this as a 'treasure hunt' with clues to each of the
examples you would like them to find, or by giving learners definitions of
each pricing strategy in a table.
Extension activity: learners find local examples of each pricing strategy
and present their examples to the class, with prizes for those who find the
example closest to the school/college. Pricing strategies local to the
school/country are relatively easy to find. The more you can give examples
that learners are familiar with, the easier it is for them to understand.
The most challenging pricing strategies are often skimming and
discrimination. For both of these, learners need to understand that different
customers will be willing to pay different amounts for exactly the same
product service. This can be a tricky concept to grasp. Some good
examples of price skimming are technology (new consoles/games, mobile
phones etc.) and for price discrimination public transport is a good example
to use.
www.tutor2u.net/business/gcse/marketing_pricing_strategies.htm
https://economictimes.indiatimes.com/definition/pricing-strategies.A price is
nearly always higher than the cost of production. Therefore, pricing
strategies is an excellent point to discuss how a business creates this value
in the customer’s mind. Why is a train ticket at peak time valued more than
one at off-peak time? Why is technology so much more valued at the start
67
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
of its life than the end?
3.3.5 Promotion
methods
The objectives and
usefulness of
different promotion
methods
Advertising
promotion
Sales promotion
Direct promotion
In groups give each one an example of a promotion method:
 advertising promotion – for example TV, radio, print, online
(www.tutor2u.net/business/reference/advertising)
 sales promotion – for example loyalty cards, competitions, free
gifts (www.tutor2u.net/business/reference/sales-promotion)
 direct promotion – for example email, telemarketing, social media
(www.tutor2u.net/business/reference/direct-marketing).
Groups design a presentation to inform the class about their given method.
They also find examples of their method to illustrate its use. Differentiation
can be built in by giving the more challenging methods. These include:
 merchandising
 direct sales
 public relations
 trade fairs.
Being able to see real examples of promotional methods and analyse their
effectiveness is a very useful learning strategy. Many examples of
promotion can be found by using internet search engines.
3.3.5 Promotion
methods
KC1 Change
KC2 Context
KC5 Innovation
Developments in
digital promotion
Digital promotion is constantly developing area, with businesses pushing
the boundaries of how to use promotion in the digital arena. Learners are
likely to know of many new forms of digital promotion and the discussion
can focus on their examples.
Learners are not expected to know about any specific forms of digital
promotion. Any used in an examination would be explained if they are not
specifically mentioned in the syllabus. Some areas to look at might include:
 use of social media in promotion, including new social media
platforms as they become popular
 use of chatbots (automated customer service used by many larger
firms to replace employees in this area)
 use of video over text-based promotion
 the role of social influencers
 increased use of personalised promotion, direct email, pop-ups
 use of ‘big’ data to forecast trends
68
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES


EVALUATION
increased use of interactive promotion
omnichannel marketing.
Whilst learners are not required to have specific knowledge of any of these
(and future) developments, if a learner uses their knowledge in a contextual
way, they will be rewarded.
Extension activity: take a ‘traditional’ promotional campaign from the past
that learners might be aware of (for example this Coke advertisement form
the 1980’s www.youtube.com/watch?v=1VM2eLhvsSM) and ask them to
think how the business might use current methods of digital promotion to
update the campaign.
3.3.5 Promotion
methods
The role of
packaging in
promotion
Ask each learner to bring in a piece of packaging to school/college. In pairs,
learners analyse the effectiveness of their packaging and then compare and
contrast it with their partner’s packaging. The questions to consider are:
 what colours are used and why are they appropriate?
 what fonts are used and why are they appropriate?
 how is the packaging designed to be displayed?
Extension activity: further questions include:
 how is the packaging designed to be delivered/distributed?
 how cost effective is the packaging?
 how could the packaging be improved?
It is worth having some examples in case learners forget to bring in an
example or do not have a good enough range. Interesting examples
include:
 crisp packets
 medicine packets/bottles
 DVD cases
 cleaning products.
www.youtube.com/watch?v=nUGm3qaujK4 – video about the importance of
packaging.
3.3.5 Promotion
methods
The role of branding
in promotion
Learners will be aware of many big brands, both locally, national and
internationally. Create a mind-map of some of the most popular brands.
Learners take one of the brands and research what promotional messages
69
Scheme of Work
WEEK
TOPIC
OBJECTIVES
16-23
3.1 The nature of marketing
TEACHER/PUPIL ACTIVITIES
EVALUATION
are associated with it. They should look at how the brand has changed over
time and why this has happened.
https://design.google/library/evolving-google-identity/ – an article about how
Google has changed their brand over time.
For consolidation, 9609/33 Oct 2020 Q3 (AO4) (F)
3.3.6 Place
(channels of
distribution)
KC6 Strategy
The objectives and
usefulness of
different channels of
distribution
Digital and physical
distribution
Suggest a variety of products and services and learners come up with new
ways in which they could be distributed. Some examples you can base this
on include:
 a high-street hairdresser
 a local restaurant
 flat-pack furniture
 gaming software.
Learners present their ideas to the class. (I)
Discuss how some products are becoming more digitally distributed. Are
there some products which are unlikely to ever be digitally distributed?
Extension activity: discuss whether the use of 3D printers might change
the nature of distribution in the future.
There is often confusion with learners over distribution and location. By
starting with products and services that already have an established
location (i.e. high street) it is easier to make the point that distribution is a
channel not just about the location.
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
70
Scheme of Work
4 Operations management (AS Level)
WEEK
TOPIC
24-31
4.1 The nature of operations
4.1.1 The
transformational
process
KC4 Enterprise
OBJECTIVES
The use of factors of
production: land,
labour, capital and
enterprise
TEACHER/PUPILS ACTIVITIES
EVALUATION
For a range of products and services, learners discuss the:
 land required, not just in terms of space but all natural resources
 labour required, including skilled and non-skilled labour
 capital required, not just money, but equipment, machinery, etc.
 enterprise, intellectual capital and enterprise skills etc.
Extension activity: include businesses whose main assets are intellectual
capital and enterprise skills, such as:



4.1.1 The
transformational
process
KC5 Innovation
4.1.1 The
transformational
process
KC5 Innovation
The stages of the
transformational
process: inputs to
outputs
universities
publishers
music producers.
A good introduction to this section is to take a simple product and explain
how it is produced. For example, a table from the primary raw materials to
secondary manufacturing and tertiary sales.
In groups have half of them think of a product, design it and make a
prototype out of whatever materials are available. The other half of the
groups think of a service that could be offered to the school/college
community, design the process involved and think about the location or
method of delivery. Each group has a set amount of time to finish the
process and report back to the whole class on their idea. Learners tend to
find operations management more difficult when it comes to the operations
of a service. A useful method of differentiation is to give more able learners
the services to produce.
The contribution of
operations to added
value
Adding value can take many forms and learners need to appreciate that it is
not just an operational process such as manufacturing. Give groups of
learners a sheet of plain paper. The aim of the task is to find ways to add
value to the piece of paper. Half of the groups find operational ways of
adding value to the piece of paper, e.g.:
 transforming it into a more useful shape
 writing/drawing on it
71
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES

EVALUATION
folding it.
The other half of the groups find marketing ways to add value to the piece
of paper, e.g.:



branding it
promoting it
adding features to it.
Each group then tries to ‘sell' their piece of paper to the rest of the group.
Which group has added the most value in the class’s opinion? Class
discussion looking at the ideas produced and trying to combine the best to
add the maximum possible value to a piece of paper.
Learners research examples of how businesses add value to paper. This
could be made into a homework competition where learners have to find a
business that has added the most value to paper. Some examples to get
learners started are:
 posters/artwork
 a ticket for a concert
 a contract. (I)
Learners present their findings to the class. Adding value through
operations is fairly easy for learners to understand, but they often find it
more difficult to grasp the concept of adding value through marketing.
However, most products and services have significant added value through
both operations and marketing.
www.tutor2u.net/blog/index.php/business-studies/comments/adding-value
Learners complete the following evaluative question, ‘Evaluate how your
school/college uses operations to add value to the education provided.’ [12
marks] It is important that the focus of this question is on operations (how
the service is produced/provided) as opposed to the marketing of the
service. This question can be made more accessible by changing the
context to a manufacturing business.
4.1.2 Efficiency,
effectiveness,
The importance of
efficiency,
Class discussion on the differences between effectiveness and efficiency.
What is the difference between describing a process as effective (link to
72
Scheme of Work
WEEK
TOPIC
24-31
4.1 The nature of operations
productivity and
sustainability
KC1 Change
OBJECTIVES
effectiveness,
productivity and
sustainability
TEACHER/PUPILS ACTIVITIES
EVALUATION
quality) and efficient (link to productivity and costs)? Learners draw up a
table outlining the advantages and disadvantages of using productivity as a
measure of efficiency. Discuss how efficiency, effectiveness and productivity
can link to sustainability. Create a mind-map showing the links between all
four concepts.
Divide the class into four groups. Each group looks at the importance of
their given concept (efficiency, effectiveness, productivity and sustainability)
to a specific business. A good example of a suitable business is a car
manufacturer, where all four concepts tend to be important. Each group
outlines why their concept is important to the business (this can be used to
develop chains of analysis). Discuss which concept is most important to the
business.
Measuring and improving effectiveness, efficiency, productivity and
sustainability is often a key element of management. A co-ordinated and
consistent approach to this is required and a good manager can get the
best out of the people and operations.
For consolidation:
 9609/13 Jun 2019 Q1 (AO2 efficiency)
 9609/12 Nov 2020 Q4a (AO2 effectiveness) Q4b (AO2
productivity) (F)
4.1.2 Efficiency,
effectiveness,
productivity and
sustainability
Measurement of
labour productivity
Create a mind-map of ways in which learners can measure their own
productivity. Some ideas might include:
 the marks/grades they receive
 the number of lessons attended
 the quality of their homework.
Now create a mind-map of how a teacher’s productivity might be measured.
Learners investigate a job role and identify ways in which the business
could measure their productivity. (I)
They then swap their ideas with another learner and analyse the ways.
Discuss which might be best in each context. For consolidation, Learners
complete the following question, ‘Analyse one way in which the productivity
73
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES
EVALUATION
of a chef could be measured.’ [5 marks] (F)
4.1.2 Efficiency,
effectiveness,
productivity and
sustainability
KC1 Change
The impact on a
business of
measures to improve
sustainability of
operations
KC6 Strategy
Sustainability is becoming more important for businesses as society is
becoming more aware of the impact business (and customer) actions have
on our environment. One of the biggest issues recently has been the
reduction in single-use plastic. Learners investigate how the reduction in
the use of single-use plastic has affected a local business. Some examples
include:
 impact on costs
 impact on reputation
 impact on sales.
Extension activity: using a well-known business, divide learners into
different stakeholder groups for that business. Each stakeholder group
researches how their given stakeholder group might judge that businesses
move towards being more sustainable. (I)
Discuss which stakeholder group might be affected by the businesses move
towards being more sustainable. This activity works best if the business
chosen has had recent publicity over their sustainability.
4.1.3 Capital
intensive and labour
intensive operations
KC5 Innovation
The benefits and
limitations of capital
intensive operations
The benefits and
limitations of labour
intensive operations
Pick a product that can be produced using labour or capital, e.g. an item of
food which can be handmade or produced on a production line. Learners
come up with all the advantages and disadvantages to the business of
producing it in this way. (I)
Divide the class into two groups – those who look at labour intensive
products and those who look at capital intensive. Each group presents their
findings to the other.
For consolidation:
 9609/12 Mar 2019 Q5a (AO3 capital intensive)
 9609/22 May 2020 Q2c (AO2 labour intensive) (F)
4.1.4 Operations
methods: job, batch,
flow, mass
Differences between
methods –
advantages and
In groups have each one produce cards for a suitable forthcoming
occasion. Each group makes:
 the first set of cards using job production – this requires each
74
Scheme of Work
WEEK
TOPIC
24-31
4.1 The nature of operations
customisation
OBJECTIVES
disadvantages of
each method
TEACHER/PUPILS ACTIVITIES


EVALUATION
learner to produce unique cards
the second set using batch production – in this case the cards are
first designed, then cut, then folded (or whatever is appropriate). It
is important that the learners only move forward when all the
cards have passed through the process in hand (i.e. all must be
cut, before any may be folded)
the third set using flow production – each learner is allocated a
specific task, and as the cards go through each stage of the
production process they are passed from learner to learner.
Class discussion about the advantages and disadvantages of each method:



which methods produced the most cards?
which methods produced the best cards?
why?
In pairs, learners consider ways in which the flow production method could
be turned into mass customisation and to look at the advantages and
disadvantages of this method. Each pair feeds back its ideas to the class.
This is a good activity that can be done with any process where the product
can be divide into a number of processes depending on the size of the
groups. The card activity works best with 3-4 learners. Set a time limit for
production to add some pressure to the activity.
www.youtube.com/watch?v=ZQ0m2dmLLcM – video on job, batch and flow
production
www.investopedia.com/terms/m/masscustomization.asp#:~:text=Mass
%20customization%20is%20a%20marketing,or%20built%2Dto%2Dorder –
article on mass customisation
4.1.4 Operations
methods: job, batch,
flow, mass
customisation
KC1 Change
The problems of
changing from one
method to another
Take an example of a product or service which is normally produced using
one method, such as:
 artwork – job production
 baker – batch production
 car – flow production
 tailored suits – mass customisation.
In groups give each one, one of the products/ services. Learners produce a
mind-map of all the problems they can think of when trying to move from
75
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES
EVALUATION
the normal method of production to the other three. To make the activity
easier, give learners a set of criteria to think about when changing from one
method to another, such as:





capital cost
revenue cost
quality
price to customers
customer expectations.
Give learners a suitable industry where the same (or similar products) are
produced using all four production methods. Ask them to find examples of
businesses that use all four methods, look at how the products differ
between each and discuss their findings with the whole group.
Most learners will be able to analyse cost and revenue issues when moving
between production methods (although they may not be able to use the
terms revenue and costs yet), but often find quality more difficult. Learners
who can link this to branding and business image are likely to perform well
in this area. A good example to suggest for the final task in this activity is
the prepared food industry. High-quality restaurants normally make to order
(job production), canteens and fast food restaurants tend to use batch
production and ready meals from shops are produced using mass
production.
Change may be for internal reasons but it may also be in response to
competitors or new technology. This is an opportunity to discuss not only
the problems of changing but the reasons behind it.
4.2 Inventory management
4.2.1 Managing
inventory
The purpose of
inventory within a
business (raw
materials, work in
progress, finished
products)
If possible, arrange a visit to a manufacturing business to provide a context
for learning and allow learners to see examples of raw materials, work in
progress and finished products. If a visit is not possible then use a suitable
case study example. Follow this with a class discussion on what has been
seen/identified. Learners identify the types of inventory involved in the
business visit/case study example and analyse the costs and benefits of
76
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES
EVALUATION
holding each in a brief report.
The costs and
benefits of holding
inventory
Extension activity: learners analyse a variety of businesses in terms of the
need for inventory. These businesses should include ones where it would
be an advantage to reduce inventory, but also at least one example of a
business where it is essential to hold large quantities of stock, for example
a wholesaler. Learners produce a brief report on their findings.
Many textbooks will use the term 'stock' instead of inventory. However,
inventory is the required term and complies with the accounting terms used
on a statement of financial position (balance sheet).
Many learners find it straightforward to understand why businesses need
inventory and to analyse the disadvantages of holding inventory. However,
many businesses need to hold large amounts of inventory to operate.
Understanding of the specific needs of the business given in a case study
context is vital.
For consolidation, 9609/21 May 2019 Q1b (AO2) (F)
4.2.1 Managing
inventory
Buffer inventory, reorder level and lead
time
Interpretation of
simple inventory
control charts
In pairs give learners an inventory control chart from a real business to
interpret. Ask them to label the:
 maximum inventory
 minimum inventory
 buffer inventory
 reorder level
 lead time.
Explain the context within which this business operates and introduce a
problem which the business needs to overcome, such as the need to
reduce lead time. Discuss ways in which the business can overcome its
inventory problems.
www.tutor2u.net/business/reference/stock-control-charts – some notes on
stock control charts.
4.2.1 Managing
inventory
The importance of
Supply Chain
Supply chain management includes inventory management but is a wider
concept that includes the management of all aspects of a business
77
Scheme of Work
WEEK
TOPIC
24-31
4.1 The nature of operations
KC6 Strategy
OBJECTIVES
Management
TEACHER/PUPILS ACTIVITIES
EVALUATION
(including people, inventory, capital and information) involved in the delivery
of a product or service.
Learners create a mind-map of all the aspects of supply chain management
for a product or service with which they are aware. They should research all
the different aspects of the transformational process and attempt to be as
comprehensive as possible. The mind-maps can be displayed on wall for
other learners to look at.
https://en.wikipedia.org/wiki/Supply_chain#:~:text=%20Supply%20chain
%20%201%20Overview.%20A%20typical,and%20quickly...%205%20See
%20also.%20%20More%20 – explanation of supply chain management
www.designingbuildings.co.uk/wiki/Supply_chain_management_in_construc
tion – an example of supply chain management in the construction industry
4.2.2 Just in Time
(JIT)
The purpose of JIT
and JIC (Just in
Case) inventory
management
The impact of
adopting a JIT
approach on a
business
Learners often want to use JIT in every business context, but it is not
always appropriate. Give a number of scenarios such as:
 dog food manufacturers – often have a stock of frozen raw
materials but use JIT for packaging (such as cans and pouches)
 house builders – the distinct phases (foundation, walls, roof,
windows, etc.) mean JIT can be used for most of the materials
 car tyre services – due to the size and range stock needed, JIT is
used for everything except the most common tyre sizes.
For each context, learners suggest how and why JIT may be appropriate or
not in terms of achieving lean production. Discussion about the costs and
benefits of JIT as a means of making production leaner. Mind-map the
results of the discussion on the board and come up with examples of
businesses where JIT may help achieve lean production and examples of
where JIT would increase costs and therefore make lean production more
difficult.
An alternative system of stock control is ‘Just in case’ where firms keep
stock just in case it is needed. It is useful if learners can analyse the
advantages and disadvantages of each in a given context. Divide learners
into two groups, one using JIT and the other JIC. Give an example of a
business which could operate using either JIT or JIC. Examples include:
78
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES



EVALUATION
retail shops
furniture shops
garage.
Each group comes up with the most relevant arguments as to using JIT and
JIC and debate which might be best.
JIT adds many new management issues such as the need to manage the
link between the business and suppliers carefully. It is not always going to
be the right method for a business to achieve cost savings and therefore
adopting it is a key management decision.
www.brighthubpm.com/methods-strategies/71540-real-life-examples-ofsuccessful-jit-systems/ – examples of businesses using JIT.
www.youtube.com/watch?v=8G-0xL84r2I – just in time vs just in case video.
www.toyotaglobal.com/company/vision_philosophy/toyota_production_system/ –
production systems at Toyota.
4.3 Capacity utilisation and outsourcing
4.3.1 Significance
and measurement of
capacity utilisation
The measurement of
capacity utilisation
The impact of
operating under or
over maximum
capacity on a
business
Using a concert/theatre venue or airline company as an example, learners
analyse the implications of operating under and over capacity. These
businesses work to a fixed capacity (number of seats) and there are clear
disadvantages to operating at or over capacity (queues, customer
satisfaction) and under capacity (what are the minimum number of seats to
be sold to break even?). (I)
Learners can usually understand how a business can work under capacity
but struggle with the concept of operating over capacity in the short run.
www.tutor2u.net/business/production/capacity-utilisation.htm – capacity
utilisation notes
For consolidation, 9609/33 Nov 2020 Q4(a)(ii) (AO2) (F)
4.3.1 Significance
and measurement of
Methods of
improving capacity
Give groups of learners a separate business scenario they need to come up
with a capacity solution for, e.g.:
79
Scheme of Work
WEEK
TOPIC
24-31
4.1 The nature of operations
capacity utilisation
OBJECTIVES
utilisation
KC6 Strategy
TEACHER/PUPILS ACTIVITIES




EVALUATION
restaurant which has limited demand during the week and too
much at the weekends
hotel which is overbooked in the summer but not in the winter
train service which is too crowded at peak times
pumpkin farmer who only has one harvest each year.
Learners work together to mind-map ways in which a business could
increase its capacity utilisation, including:



rationalisation
sub-contracting
other methods.
Each group presents their findings to the class and explains/justifies the
solutions they propose. Using local or regional examples will help learners
understand this topic. Getting the most out of the capacity available and
coming up with ways to increase it often requires an innovative approach.
www.tutor2u.net/business/production/capacity-utilisation.htm – notes on
capacity utilisation.
www.youtube.com/watch?v=CbZrPY4hh9Y – video on capacity utilisation.
4.3.2 Outsourcing
KC1 Change
KC3 Decisionmaking
The impact of
outsourcing on a
business
Learners investigate why outsourcing is used by their government (or other
suitable government/example) and produce a table of benefits and costs to
the government of its outsourcing. (I)
Learners investigate a business that has used outsourcing
(https://biz30.timedoctor.com/outsourcing-examples/) and come up with the
impact that outsourcing has had on the business. (I)
Discuss the impacts and evaluate the most important impact. Learners use
the following business examples to identify and explain in writing which
businesses are most likely to want to outsource which services:
 McDonalds
 local clothes shop
 accountancy firm
 supermarket
 Microsoft
 firm of architects.
80
Scheme of Work
WEEK
TOPIC
OBJECTIVES
24-31
4.1 The nature of operations
TEACHER/PUPILS ACTIVITIES
EVALUATION
Many governments use outsourcing of public services. Many benefits and
costs may be associated with outsourcing but the process must be
managed and this is not always as easy as managing your own workforce.
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
81
Scheme of Work
5 Finance and accounting (AS Level)
WEEK
TOPIC
32-36
5.1 Business finance
5.1.1 The need for
business finance
KC3 Decisionmaking
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
Reasons why
businesses need
finance to start up, to
grow and to survive
Allocate groups of learners a suitable business to look at from one of the
following business types:
 a start-up business
 an established business
 a business with unlimited liability
 a company.
KC4 Enterprise
EVALUATION
Each group then researches what the capital needs are of that business
type and whether there are any sources of finance their business type is
unable to access.
KC5 Innovation
KC6 Strategy
Each group reports its findings to the whole class. Consolidate
understanding of the key capital and financing points for each business
type. Throughout this topic, cover the full range of business types and use
examples that learners are familiar with.
One of the most misunderstood areas in relation to capital is the distinction
between owner’s capital (in an unincorporated business) and shareholder
capital (only in incorporated businesses). It is vital that learners do not
suggest an invalid source of capital for the business you give them in this
activity.
Finance is often the first barrier to business success, and entrepreneurs
must be able to show a strategy for returning any borrowed capital. If
learners suggest a bank loan is a good source of finance, there must be a
clear strategy for its repayment.
The point of most businesses is to create value beyond the capital of the
business.
www.tutor2u.net/business/finance/finance_sources_smes.htm – notes on
sources of finance.
5.1.1 The need for
The distinction
Learners often want to categorise sources of finance into short and long
82
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
between short and
long term need for
finance
term. However, these concepts are dependent on the context given. For
example, bank loans are normally considered to be long term sources of
finance but short term bank loans are available and may be applicable
depending on the context.
EVALUATION
Using the data from 9609/22 Mar 2019 Q1 (Jim’s farm, JF, this can be
based on option 1 or option 2), learners list as many different sources of
finance as they can think of that could be suitable. Each learner should then
rank their sources of finance from most appropriate to least appropriate
based upon the context.
Learners then perform a similar exercise based on something they would
like to buy right now that is relatively inexpensive. Again, list all the
alternative sources of finance open to them and rank these based on their
own context.
Many of the same sources will appear on both lists, but the context (and the
nature of the need, short term or long term) will form the basis of the
analysis.
For consolidation, 9609/22 Nov 2016 Q1c (AO3) (F)
5.1.1 The need for
business finance
The difference
between cash and
profits
Explain that cash can be seen as the 'blood' flowing round the body of a
business – a business cannot function without cash. As part of this, discuss
the difference between cash and profit. Learners research and produce a
brief written report on the need for cash within a chosen business, such as:
 restaurant
 seasonal tourist business
 toy manufacturer
 hairdressers
 ice cream retailer. (I)
Learners then write a brief explanation of the consequences to the business
of not holding sufficient cash. (I)
The difference between cash and profit is often not appreciated by learners.
Most business failures are not due to lack of profits, but to poor cash flow.
83
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
5.1.1 The need for
business finance
KC1 Change
KC3 Decisionmaking
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
Business failure as a
consequence of lack
of finance:
bankruptcy,
liquidation and
administration
Learners need to use terminology in this area of the syllabus very carefully.
Too often (in the media and everyday life as well as learner responses)
bankruptcy, liquidation and administration are confused.
KC6 Strategy
EVALUATION
https://businessadvice.co.uk/tax-and-admin/year-end/the-differencebetween-insolvency-liquidation-bankruptcy-and-administration/ – article
about the differences between the terms.
Give three groups of learners a scenario:
 a sole trader who cannot pay their creditors – individuals go
bankrupt, so this is the correct term for a person, or an
unincorporated business (where there is no separate legal
personality)
 an incorporated business which cannot pay their creditors –
liquidation would be the process of selling off the assets to pay as
many of the bills as possible
 an incorporated business which may not be able to pay their
creditors – administration would be the process of handing over
the business to an objective entity (the administrators) to choose
the best course of action.
Examples of each type of business failure from recent news is also a good
way to explain these concepts. Learners discuss their scenario using the
terminology from the syllabus.
5.1.2 Working capital
The meaning and
importance of
working capital
Using the case study examples worked on in the previous activity, learners
produce a written explanation about how working capital may flow around
each of the businesses. In this, they should also explain how each business
generates its working capital and what the most obvious areas of
expenditure are. (I)
Working capital is the main source of finance for running a business. It can
be explained as a flow of cash around a business, and stoppages at any
point can lead to cash flow problems. An understanding of the importance
of working capital for every business type is important. Also introduce the
concept of cash flow here.
5.1.2 Working capital
Managing trade
Many textbooks and resources will use debtors as opposed to trade
84
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
receivables and
trade payables
receivables and creditors as opposed to trade payables. However, in this
syllabus, learners must use these terms.
EVALUATION
These concepts are best described to learners as businesses and people
who owe money to the firm (trade receivables) and people and businesses
who the firm owes money to (trade payables).
Give learners a suitable context (for example a local shop) and ask them to
think of why and how the business might have trade receivables and trade
payables. In what circumstances might the business build up both of these
and what is the danger of having too much of one or both? Linking back to
the previous example of cash being a flow around a business, if it is stuck
at either of these points in the business, then the business may find itself
unable to operate and therefore face failure.
A bank can be a good example of a business that always has high levels of
trade receivables and trade payables, as this is the nature of their industry.
Ask learners to investigate large banks that may have failed as result of
poor management of these. (I)
5.1.2 Working capital
The distinction
between capital
expenditure and
revenue expenditure
Building on the business case study examples used for the previous two
activities, learners describe in writing the capital and revenue expenditure
required by each business type. Give learners a list of things that require
expenditure for each business, some requiring capital expenditure and
some revenue expenditure. Learners identify which is which.
Extension activity: give groups of learners new business case study
examples and ask them to identify in a table a number of different costs that
the business may encounter. Can they explain the need for both capital and
revenue expenditure?
The distinction between revenue and capital expenditure is important so
that learners can use and respond to the terms appropriately in
examinations.
5.2 Sources of finance
85
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
5.2.1 Business
ownership and
sources of finance
KC2 Context
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
The relationship
between the form of
business ownership
and availability of
sources of finance
Lead a class discussion about the different forms of ownership of
businesses, focusing in particular on sole traders, partnerships, private
limited companies and public limited companies. For each different
structure, learners identify and discuss which sources of finance are
available and which are not.
EVALUATION
Provide learners with case study examples or data-response questions that
give different contexts for businesses with different legal structures.
Learners analyse in a table the appropriateness of the different sources of
finance that may be available and come to a conclusion about the most
appropriate one(s). The most basic misunderstanding here surrounds the
ability of companies to sell shares. Learners often think that all businesses
are companies and/or all businesses can access share capital as a source
of finance. This needs to be taught well to avoid answers to examination
questions which show a lack of context.
5.2.2 Internal and
external sources of
finance
Internal sources of
finance: owners
investment, retained
earnings, sale of
unwanted assets,
sale and leaseback
of non-current
assets, working
capital
External sources of
finance: share
capital, debentures,
new partners,
venture capital, bank
overdrafts, leasing,
hire purchase, bank
loans, mortgages,
debt factoring, trade
credit, micro-finance,
Give pairs of learners a list of sources of finance (internal and external) and
some suitable business contexts. Based on these they answer the following
questions:
 is each source of finance internal or external?
 is each source of finance short term or long term?
 which source of finance best meets the needs of each context?
(There may be more than one answer to this, so the emphasis
should be on explaining which is most appropriate.)
On completion, each pair reports back their findings to the class. Where
pairs disagree, discussion can take place with a vote to decide the
outcome.
Tailor the complexity of the business contexts you use for this activity to the
level each pair can manage. The more complicated and ambiguous ones
can be picked up in the class discussion.
As businesses and their environment changes, so do the relevant and
acceptable sources of finance. Understanding how change can affect
business decision making about appropriate sources of finance is a good
advanced-level skill to develop.
86
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
crowd funding and
government grants
5.2.3 Factors
affecting the sources
of finance
5.2.4 Selecting the
source of finance
KC3 Decisionmaking
The factors
influencing the
choice of sources of
finance in a given
situation: cost,
flexibility, need to
retain control, the
use to which it is put,
level of existing debt
The appropriateness
of each possible
source in a given
situation
Allocate groups of learners one source of finance and a suitable business
context. Using a large sheet of paper, groups mind-map the most important
factors affecting that business’s choices for sources of finance. Each group
presents its findings to the class.
Learners research a given business which has a need for finance – the
business could be in any sector and any size as long as learners have
access to the relevant data. Learners produce a project report that:
 outlines the business’s need for finance
 explains the factors influencing the sources of finance
 analyses the relevant importance of each factor
 makes a judgement about the most appropriate source of finance.
This topic must be done in context and learners must be able to apply the
knowledge to the specific context of a business. It is quite possible to have
two very similar businesses with similar needs for finance to have very
different factors. Adaptability is the key to good understanding here.
Use 9609/13 May 2019 Q7(a) as the basis for a class discussion on the
most appropriate source of finance. The context of a multinational car
manufacturer financing the production of a new car should form the basis of
the analysis. This should emphasise the importance of context in the
analysis and evaluation of sources of finance.
www.youtube.com/watch?v=DAZi6XcTZzE – video about choosing suitable
sources of finance.
www.accaglobal.com/ca/en/student/exam-support-resources/fundamentalsexams-study-resources/f9/technical-articles/selecting-sources.html –
choosing appropriate sources of finance.
5.3 Forecasting and managing cash flows
5.3.1 Cash flow
forecasts
KC6 Strategy
The meaning and
purpose of cash flow
forecasts
Link back to the previous section about the difference between cash and
profit. Learners are likely to have some experience of managing cash flow
for themselves. This might be pocket money, a part-time job or cash given
87
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
as a present for a birthday. Learners think about how they manage their
own cash flow. Discuss:
 where do they keep their cash so that they can access it?
 what happens if they hold too much cash?
 what happens if they have too little cash?
Give learners a cash flow forecast from a suitable business case study
(9609/22 March 2018 has a suitable cash flow forecast). Ask them what can
they tell about the business from the cash flow forecast? Discuss the
figures and highlight any issues with the cash flow forecast.
www.tutor2u.net/business/gcse/finance_cashflow_forecast.html
5.3.1 Cash flow
forecasts
The interpretation
and amendment of
simple cash flow
forecasts: calculating
opening and closing
balances
Give learners some figures to enter into a cash flow. These can be as
simple or as complicated as needed to challenge learners. Then give
learners some changes to be made to the cash flow forecast. This can be
done as a race to see which learner can correctly complete the cash flow
forecast.
Class discussion on the impact uncertainty can have on producing
forecasts. Learners identify businesses where there is more uncertainty due
to issues such as seasonality, external issues, changing technology etc.
Cash flow forecasting is only as good as the environment is stable. Many
businesses have spent hours forecasting their cash only to find that a
fundamental change makes the forecasts unusable. Change is not a reason
not to forecast, but it is one of the major constraints on its usefulness.
For consolidation, 9609/23 May 2019 Q2b (AO2) (F)
5.3.1 Cash flow
forecasts
Different methods of
improving cash flow
Class discussion on the ways in which cash flow can be improved in a
business.
In groups learners look at a business they already have some knowledge
of, e.g. a local business. Group identify where cash inflows come from in
that business and what the most likely areas are for cash outflows. They
then draw a diagram showing how the cash flows around the business and
to show possible areas for blocks in the cash flow. For each area of
possible blockage, the group then analyses the effect of cash not flowing
88
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
and suggests possible solutions. This should include:
 management of trade receivables and payables
 debt factoring
 sale and leaseback
 leasing and hire purchase.
Extension activity: learners mind-map the different ways in which a
business can solve cash flow problems, separating the solutions into short-,
medium- and long-term solutions. (I)
Cash flow problems are a major source of business failure and therefore
cash flow management is one of the most important skills a good manager
develops.
www.eulerhermes.co.uk/resources/cash-flow-management/how-to-protectyour-companys-cashflow.html?
utm_source=google&utm_medium=cpc&utm_campaign=12123239678&ad
groupid=117626627420&gclid=EAIaIQobChMI8_bXqNnG7gIVh7TtCh1sAaWEAAYAiAAEgLNP_D_BwE – article about managing cash flow
5.4 Costs
5.4.1 Cost
information
The need for
accurate cost
information
Different types of
costs: fixed, variable,
direct and indirect
Hand out a list of costs common to a business (include at least one variable
indirect cost and one fixed direct cost). Learners identify in writing whether
the cost is fixed or variable and explain why. With the same list, discuss
whether the costs are direct or indirect to ensure learners understand
clearly what these categories mean.
Give groups of learners a business context involving the provision of more
than one product or service, e.g. a hairdressing salon, together with data on
some or all of the costs covered in the previous task for that business. Each
group allocates the costs provided to individual product or service lines, e.g.
for a hairdressing salon, to individual hairdressers, discusses their ideas
and comes to a 'best fit' judgement for the group about how to allocate the
costs.
Extension activity: learners explore the different methods of allocating
costs, such as absorption costing and marginal costing.
89
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
Class discussion on how different businesses and industries may choose to
allocate costs in different ways and the problems associated with allocation,
e.g.:
 travel industry – how can the fixed cost of a bus/airplane be
allocated to individual passenger prices?
 Coca-Cola – how can indirect costs be allocated across the range
of drinks produced by the brand?
 Apple – if costs for product development are allocated to each
product, how might this affect the perceived profitability of a new
iPad?
Follow this with a discussion on the importance of accurate data when
calculating costs and the factors which could affect this, e.g.:
 growth/decline of the business
 seasonality
 changing external influences (economy, fashions/tastes,
demographics etc.)
Costs are categorised by their behaviour and by the way in which a
business chooses to use them. There is a great deal of overlap between
direct and variable and indirect and fixed. However, the important
understanding is that direct and indirect are usually used by the operations
function whereas fixed and variable are usually used by the accounting and
finance functions.
5.4.2 Approaches to
costing: full,
contribution
The differences
between full and
contribution costing
The uses and
limitations of the full
costing method
The nature of the
technique of
contribution costing
Divide the class into two groups. Give each group one of the two costing
methods (full, contribution). Learners identify as many businesses as they
can which might benefit from using their given costing method and explain
for the businesses they list why they believe that costing method would be
useful.
Lead a class discussion between the groups about the businesses they
identified and invite each group to argue the case for why they think their
costing method would be better. Learners do a written analysis of the uses
and limitations of both costing methods in a range of contexts, e.g.:
 travel – how can the fixed cost of a bus/airplane be allocated to
individual passenger prices
90
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
The difference
between contribution
and profit
The limitations of
contribution costing
TEACHER/PUPIL ACTIVITIES


EVALUATION
Coca-Cola – how can indirect costs be allocated across the range
of drinks produced by the brand?
Apple – if costs for product development are allocated to each to
product, how might this effect the perceived profitability of a new
iPad? (I)
Extension activity: learners include other methods of allocating costs, e.g.
absorption costing and marginal costing in their written analysis as well. (I)
Class discussion on how different businesses and industries may choose to
allocate costs in different ways. Although the only costing methods required
by the syllabus are full and contribution, many textbooks explore other
methods of costing as well. Only use these with learners who want to go
further than the syllabus.
www.revisionworld.com/a2-level-level-revision/business-studies/accountingfinance-marketing/budgeting/cost-analysis-decision-making
What's the Difference Between Profit and Contribution? | Babington – the
difference between contribution and profit.
5.4.2 Approaches to
costing: full,
contribution
5.4.3 Uses of cost
information
Situations in which
contribution costing
would be and would
not be used
Contribution costing
as a means to help
make special order
decisions
Give learners an appropriate case study context together with the relevant
numerical data on that business’s:
 direct cost of production (per unit)
 total indirect costs.
Learners calculate a price they can justify for the product/service described
using the full costing method. Introduce a 'special order' that learners must
make a decision about. This ‘special order’ should be at a lower price than
the full cost, but higher than the marginal or contribution cost of production.
Also stipulate some other appropriate benefits and costs arising from
accepting or rejecting this order.
Learners provide a written recommendation and full justification about
whether the business should accept this order. This includes identifying
what further information might be needed to help inform the decision further
and what they considered the key factors were in the decision they came to.
(I)
Learners need to be able to use numerical data as evidence to argue a
91
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
case. Equally, they need to have sufficient confidence in doing this not to
rely on numerical data as the only relevant evidence and argue for an
alternative viewpoint where appropriate.
For consolidation, 9609/33 Nov 2020 Q4(a)(i) (F)
5.4.3 Uses of cost
information
KC3 Decisionmaking
Cost information for
decision-making
purposes, e.g.
average, marginal,
total costs
Give learners a set of costs for the development and sales of a new
product. Based on predicted sales figures, learners calculate:
 unit variable cost
 unit allocation of fixed costs
 unit total cost
 marginal cost (assuming no increase in fixed costs this will be the
variable cost per unit)
 average cost.
Discuss how the costing calculations can be used to make decisions about
pricing and production levels. Using the product for which they calculated
costs, encourage learners to suggest a realistic selling price.
Many learners struggle with these calculations, however they are an
essential part of business. Give learners the time and guidance they need
here.
The second activity can be used to extend those who finish quicker. These
learners can then feedback their findings to the class.
The role of a manager is to make decisions and implement them. Having
the numerical data and understanding the information is vital to make good
management decisions. This is especially important when it comes to costs,
since allowing costs to spiral out of control is one of the main reasons for
business failure.
5.4.3 Uses of cost
information
KC3 Decisionmaking
KC6 Strategy
How costs can be
used for pricing
decisions
How costs can be
used to monitor and
Divide the class into groups with four learners in each to role-play starting a
sweet shop within the school/college. The aim of the role-play is to come to
inventory decisions (quantity) and pricing. Each learner takes one of the
following four roles:
 managing director
 finance director
92
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
improve business
performance,
including using cost
information to
calculate profits
TEACHER/PUPIL ACTIVITIES


EVALUATION
operations director
marketing director.
Give each group a realistic budget, a stock list containing a range of locally
available sweets and a wholesale price list. Learners then calculate the
average, marginal and total costs for each product. Each group comes up
with a pricing strategy based on this cost information and presents its
findings to the class. As the teacher, you judge which group has made the
best model.
If time and resources allow, arrange for learners to run their school/college
shop, with each group taking one lunchtime shift during the week. As part of
this they should apply the learning from the previous role play to the real
decisions made and write draft suggestions for how the inventory and
pricing strategy could be developed to improve performance and profits.
By using group work, some learners may choose not to engage with the
costing calculations. This activity may require careful monitoring by the
teacher to make sure that each learner is capable of performing all the
relevant calculations.
5.4.4 Break-even
analysis
The meaning and
importance of breakeven analysis
Calculation and
interpretation of
break-even level of
output, contribution,
margin of safety and
level of profit (in
numeric and graphic
form)
The uses and
limitations of breakeven analysis
Introduce the concept of break-even with a demonstration using coloured
water and different size glasses. The large glass represents the selling price
(i.e. product sold). Fill it and then pour from this into the small glass, which
represents variable costs. The amount left over represents the contribution
to fixed costs – pour this into a container or jug. When enough contributions
from sales have been poured in and filled the jug, the business has broken
even and all the other contributions are profit.
Adding colouring makes the water more visible. Do this by putting small
amounts of dye in the bottom of each glass rather than colouring the water
itself so the different receptacles and the different elements they represent
have different colours.
Give learners a series of mini case studies containing increasingly complex
figures upon which to base break-even, margin of safety and profit
calculations. Learners then complete the calculations as a class race to see
who can correctly calculate through to the end of the most difficult problem
93
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
first.
Follow this with a class discussion focusing on the uses and limitations of
the break-even technique.
Break-even is relatively straightforward as long as the numbers involved are
simple. Build up from the most basic calculations and add in complexity as
learners become more confident.
www.tutor2u.net/business/production/break_even.htm
The margin of safety is calculated by taking the break-even level of output
away from the current level of output. This is therefore the amount over and
above the break-even point. A business creates value by operating above
the break-even point.
For consolidation:
 9609/22 Mar 2020 Q2bi (AO2 calculate the break-even point)
 9609/21 May 2017 Q2bi (AO2 calculate the margin of safety)
 9609/11 May 2018 Q4b (AO2 limitations) (F)
5.5 Budgets
5.5.1 The meaning
and purpose of
budgets
The measurement of
performance
The meaning and
use of incremental
budgets, flexible
budgets and zero
budgeting
Using the school/department budget or a similarly familiar setting, discuss
with the class the processes by which the budget is developed and
approved. Learners produce a written analysis of:
 the constraints placed upon the department by the budget
 the benefits of having a budget
 whether the school would be better using an incremental, flexible
or a zero based budgeting system, justifying their conclusion. (I)
In pairs learners think of and plan for a holiday they would like to take in the
future. They should research and investigate all the costs involved and use
this information to prepare and write up a budget for the holiday. Using a
context that is familiar to learners is a good way to introduce the topic of
budgeting, and the department budget for your teaching area is one good
way to do this if appropriate. Emphasise that budgeting is a management
process.
94
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES
EVALUATION
https://en.wikipedia.org/wiki/Budget#:~:text=A%20budget%20is%20a
%20financial,assets%2C%20liabilities%20and%20cash%20flows –
definition of budgets.
www.principlesofaccounting.com/chapter-21/budgets/ – article and video on
the purpose of business budgets.
5.5.1 The meaning
and purpose of
budgets
The benefits and
drawbacks from the
use of budgets
Using the holiday budget prepared in the previous section, ask learners in
their original pairs to analyse and produce a table of the benefits and
drawbacks of having that budget.
The uses of budgets
for measuring
performance,
allocating resources,
controlling and
monitoring a
business
In groups learners to take the part of the holiday business the holiday will
be booked through. Each group thinks about how they prepare their
budgets for the year and develops budget lines for all the key elements,
such as:
 pre-booking airline seats
 pre-booking accommodation
 employing holiday representatives
 marketing
 revenue gained from selling package holidays
 revenue gained from selling excursions.
For each budget line, learners provide a written explanation of the main
problems that would occur if a rigid budget was set. (I)
Extension activity: learners investigate other business types where
budgeting is more difficult and explain how the business could still make
effective use of budgeting. (I)
Keeping learners in their groups, ask them to create a mind-map of the
reasons for budgeting based on the following 'spokes':
 allocating resources
 controlling the business
 monitoring the business
 measuring/appraising the business performance.
Each group takes one spoke and draws its mind-map on how budgeting
can achieve that objective on the board. For the challenging task, some
businesses where budgeting might be more difficult include:
95
Scheme of Work
WEEK
TOPIC
32-36
5.1 Business finance
OBJECTIVES
TEACHER/PUPIL ACTIVITIES



EVALUATION
seasonal businesses, such as farms, tourist businesses etc.
fashion clothing businesses
businesses who are greatly affected by external influences such
as airlines, house builders, etc.
www.tutor2u.net/business/accounts/introduction-to-budgets.htm – notes on
budgeting.
5.5.2 Variances
KC2 Context
The meaning of
adverse variances
and favourable
variances
The calculation and
interpretation of
variances
Give learners pre-prepared revenue and cost data and ask them to
calculate simple variances, identifying in each case whether the variance is
favourable or unfavourable to the business.
Then give learners a business case study that includes forecast and actual
figures for a variety of budgets, including both revenue and cost budgets.
Learners produce a written analysis of the variances in the context of that
business.
Learners investigate a business and identify in a brief written report the
most common reasons for variances in that business, for example
fashions/trends, energy prices, labour costs. (I)
Variances are not useful without at least some basic analysis of their effect
on the business. Identifying a variance as adverse or favourable also
depends on recognising the type of budget (revenue or cost).
Some textbooks use the terms ‘positive’/’negative’ but learners should
always use ‘adverse’ and ‘favourable’.
Any business learners have already looked at would be suitable for the
tasks to be undertaken in this activity.
For consolidation, 9609/31 Nov 2020 Q2(a)(ii) (AO2) (F)
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
96
Scheme of Work
6 Business and its environment (A Level)
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
6.1.1 Political and
legal
KC2 Context
The advantages and
disadvantages of
privatisation in a
given situation
The advantages and
disadvantages of
nationalisation in a
given situation
In pairs learners choose an industry in their country that is state owned (if this is not possible then suggest another
country which still has state-owned businesses). Learners prepare an argument for the industry to be privatised or
to stay nationalised, respectively.
Then put the pairs into larger groups and ask them to look at a business that has already been privatised,
producing a mind-map of the advantages gained by the state and other stakeholders by the privatisation. Use local
examples of privatisation if possible.
www.economist.com/topics/privatisation-and-nationalisation (list of articles)
For consolidation, 9609/31 Jun 2019 Q1 (AO3) (F)
6.1.1 Political and
legal
KC2 Context
How a government
might use the law to
seek to control:
employment
practices, conditions
of work (including
health and safety),
wage levels,
marketing behaviour,
competition, location
decisions, particular
goods and services
In groups learners devise a basic board game based on answering questions about the political and legal
influences on a business. Learners will need to research the political and legal influences on businesses in their
country. Areas to consider for questions could include:
 employment conditions
 health and safety
 minimum wage
 restrictions on marketing behaviour
 competition regulations
 location and environmental regulations
 regulations over the sale of goods and services.
Extension activity: learners add questions about the differences between their and other countries’ political and
legal influences on a business.
Learners are not expected to know about specific political parties or laws but must be able to identify the type of
political and legal influences that are applied to businesses using contexts given to them. No one particular
country’s laws are more important than another's, for this topic, and if the use of specific type of law is required
(i.e. minimum wage) then learners will be made aware of this in the examination.
Change within politics and the legal system is often slow and can be planned for. However, there are also
occasions when it is unforeseen, and businesses must be able to adapt quickly and efficiently.
97
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
6.1.1 Political and
legal
KC2 Context
KC3 Decisionmaking
Understand the
impact of changes in
political and legal
factors on business
and business
decisions
In pairs learners research one example from the following types of international agreement:
 international treaties, e.g. Maastricht treaty
 free trade agreements, e.g. North American Free Trade Agreement
 climate change agreements, e.g. Kyoto
 common currency agreements, e.g. Euro.
Each pair designs a poster showing the potential benefits and costs to domestic businesses.
Referring back to the work they did on local, national and international businesses earlier in the course, each pair
discusses the impact their international agreement had or would have if it were applied to the three businesses
they researched.
Learners write a brief report to explain and analyse why, even if the conclusion is little or no influence. (I)
Learners are not expected to have detailed knowledge of specific international agreements. If a specific
agreement is used, learners will be made aware of it in the exam.
6.1.2 Economic
KC2 Context
How government
might intervene to
help businesses and
encourage enterprise
How government
might intervene to
constrain business
activity
How government
might deal with
market failure
Learners explain and analyse in a brief report how government policies in the recent past may have affected the
three businesses they chose for the work on local, national and international businesses at the start of this unit. (I)
In groups allocate each one a market failure in a context that is relevant to their local economy, such as:
 provision of public/merit goods, e.g. healthcare
 regulation of demerit goods, e.g. cigarettes
 externalities, e.g. pollution.
Each group investigates and explains what steps the state has taken to reduce or control their allocated market
failure. This could include:
 regulation
 taxation
 grants and subsidies
 permits
 information provision.
Each group presents their findings to the class. Learners investigate one business that has been affected in a
negative way and/or one business that has been affected in a positive way by the policies outlined in the previous
task. (I)
The government plays a key role both in enabling business and in preventing markets from failing. In the first task
98
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
learners look at what their government has done to encourage business and allow more competition in the market
(e.g. grants, tax relief, etc.).
The second (group) task then enables them to focus on addressing market failure (e.g. protection for new
businesses, monopoly and merger regulations, etc.).
6.1.2 Economic
KC2 Context
The key
macroeconomic
objectives of
governments: low
unemployment, low
inflation, economic
growth
How macroeconomic
objectives and
performance of an
economy can have
an impact on
business activity
Government policies
used to achieve
macroeconomic
objectives: monetary,
fiscal, supply-side
and exchange rate
policies
Divide the class into five groups and give each one of the following government macroeconomic objectives:
 low unemployment
 low and stable inflation
 stable exchange rates
 transfer of wealth
 economic growth.
Using their own or another stated country, each group researches their macroeconomic policy and:
 produces a timeline showing the changes in the policies and rates involved for that policy over time
 identifies a number of points on their timeline where the impact on business has been significant (good or
bad)
 adds what these impacts on business were to the timeline. (I)
In the same groups, each learner is then allocated a particular macroeconomic policy instrument, e.g. fiscal,
monetary, supply-side and exchange rate and asked to identify the places in the timeline where their instrument
was used and what impact it had. They add these descriptions and analysis to the timeline. (I)
Each group then displays and discusses their timeline with the class. If possible, learners also discuss how the
different macroeconomic objectives may interact with each other. Try to spot overlapping changes and where there
are points of positive/negative performance in more than one macroeconomic objective at the same time.
The five objectives listed in the activity reflect those emphasised in the syllabus. You might find that some
textbooks focus on a stable balance of payments rather than exchange rates or transfer of wealth.
Use an internet search to look for the specific macroeconomic objective and country you want to set for each
group. The economy is often seen as a constraint on a business, but often economic change is also an
opportunity. Look at the recent global recession and the types of business that have grown because of a downturn.
www.tutor2u.net/economics/content/topics/macroeconomy/government_policy.htm
www.tutor2u.net/economics/revision-notes/as-macro-macroeconomic-policy.html
Extension activity: the BBC produced a series of programmes based on key economic thinkers (Keynes, Hayek
and Marx). These are beyond the needs of this course, but provide useful extension material to challenge the most
99
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
able learners: www.youtube.com/results?search_query=masters+of+money
For consolidation, 9609/33 Oct 2018 Q1 (AO3 – fiscal policy) (F)
6.1.2 Economic
KC2 Context
The impact of
changes in these
government policies
on business and
business decisions
Learners should investigate a local business that interests them. The focus of the investigation should be how the
business could respond to the following changes:
 a significant change in the interest rate (monetary policy)
 a significant change in corporation tax (fiscal policy)
 a significant change in income tax (fiscal policy)
 a significant change in government education policy (supply side)
 a significant change in government investment in the country’s infrastructure (supply side).
Use whatever changes are likely to have the biggest impacts on businesses in your country. These can be
adapted (for example if interest rates are already low, then use an increase). Learners present their findings as a
presentation to the group, or as a project. (I)
6.1.3 Social and
demographic
KC1 Change
KC2 Context
The impact of and
issues associated
with corporate social
responsibility (CSR),
e.g. accounting
practices, paying
incentives for the
award of contracts,
social auditing
Many larger businesses will have a CSR policy. Learners investigate the CSR policy of one such business in their
own country or using the website links provided opposite and analyse in a table the effects that policy is likely to
have on the following areas of business activity:
 production
 marketing
 employment
 finance
 objectives.
Many businesses have downloadable corporate social responsibility policies, e.g. www.mcdonalds.com/gb/engb/help/faq/19263-what-is-mcdonalds-corporate-social-responsibility-csr-policy.html and www.cocacolacompany.com/sustainable-business
CSR is a topic that occurs in the AS Level section of the course. The focus here should be how the pressure of
CSR in society may affect a business’s decision making.
6.1.3 Social and
demographic
KC2 Context
Why businesses
need to consider the
needs of the
community including
pressure groups
Discuss the needs of the local community, how different types of business may respond to those needs and why.
These might include:
 litter and pollution
 jobs and employment
 congestion and parking.
100
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
Build a mind map of the ideas discussed on the board.
In groups learners research a pressure group that works within your local community. Learners design a suitable
form of promotion for that group’s messages. (I)
Learners analyse and evaluate in writing the effects of the chosen pressure group on one particular business in
your local area. Many businesses may not be affected, so choose one where there is a positive or negative effect.
National pressure groups can be used for this activity, but local groups may allow learners to see the actions of the
group and their impact themselves.
Use internet news searches to find recent stories on pressure groups working in your area.
For most businesses, local community is likely to form the basis for some or more of its customers. Therefore,
taking community needs into account can also be about meeting customer needs.
www.tutor2u.net/politics/content/topics/pressure_groups/pressure_groups.htm
6.1.3 Social and
demographic
KC1 Change
KC2 Context
KC3 Decisionmaking
Demographic
changes at a local,
national and global
level
The impact of social
and demographic
change on business
and business
decisions
Give groups of learners a typical demographic change to investigate in relation to their area or another location.
Each group produces a brief written report on the changes to:
 age, e.g. rise in school, retirement or working age
 ethnicity (change in ethnic composition or relations)
 wealth (presence and causes of deprivation, class)
 home ownership/rental accommodation and quality
 employment status (including part-time)
 location of population (rural/urban).
Allocate each learner one of the demographic changes discussed and ask them to evaluate in a brief written report
the impact it has had on a particular business. The business chosen should preferably have experienced both
positive and negative effects from the identified demographic changes.
The customer base for all businesses is people. A successful business is one that responds to the changing
demographics of the countries in which it operates.
6.1.4 Technological
KC1 Change
KC2 Context
The impact of
technological change
on business and
business decisions
Learners investigate a technological change at school/college that affected them and analyse in a table the
benefits they gained from that technology being introduced and the likely costs of that change to them, the school
or government.
101
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
Using the same process, learners analyse in a table the effects on a business (good and bad) of the introduction
of a piece of technology. This could be something as simple as a photocopier or something as large as a new
production method. (I)
In pairs learners debate whether and how the internet has been positive or negative for businesses. Each pair
produces a paragraph arguing a positive effect and a paragraph arguing a negative effect.
Technological change can have a major impact on business activity, as has been with the rise of the internet, but
can also be incremental, such as the take-up of interactive whiteboards and tablet computers in schools.
Technology is an obvious and accessible area to discuss change.
Extension activity: www.businessnewsdaily.com/9276-commercial-drones-business-uses.html – an article about
new uses for drone technology, which may prove an interesting discussion point.
6.1.5 Competitors
and suppliers
KC2 Context
KC3 Decisionmaking
the impact of
competitors and
suppliers on
business and
business decisions
Place the name of a well-known business in the middle of the board. Learners identify as many associated
businesses as possible. These could include:
 suppliers
 trade customers
 logistics companies
 utility providers
 maintenance and cleaning services.
Learners take one of the associated businesses identified and:
 evaluate the effect it could have on the original business
 analyse the extent to which it can influence the original business in a positive and/or negative way
 evaluate which business is likely to hold the most power in this relationship and why. (I)
Choose a business that has some obvious links with other businesses and which learners are aware of.
6.1.6 International
KC2 Context
KC3 Decisionmaking
the importance of
international trading
links and their impact
on business and
business decisions
Learners research one business from each of the following three types and identify and explain in writing the
differences:
 local business – ideally this should be a small business rather than a local branch of a larger business
 national business
 multinational business. (I)
Discuss how international trading impacts on the business, making sure you cover the following key issues:
 more competition
 economies of scale
102
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity


diseconomies of scale
increased movement of goods.
The focus of the discussion should be on how international trade can be advantageous and disadvantageous to
the businesses.
www.youtube.com/watch?v=IbfiK97nVbA – short video introducing the advantages and disadvantages of
international trade.
6.1.6 International
how international
trade agreements
might have an impact
on businesses
In pairs learners research one example from the following types of international agreement:
 international treaties, e.g. Maastricht treaty
 free trade agreements, e.g. North American Free Trade Agreement
 climate change agreements, e.g. Kyoto
 common currency agreements, e.g. Euro.
Each pair designs a poster showing the potential benefits and costs to domestic businesses.
Then, referring back to the work they did on local, national and international businesses, each pair discusses the
impact their international agreement had or would have if it were applied to the three businesses they researched.
Learners then write a brief report to explain and analyse why, even if the conclusion is little or no influence. (I)
Learners are not expected to have detailed knowledge of specific international agreements. If a specific
agreement is used, learners will be made aware of it in the exam.
6.1.6 International
KC1
The role of
technology in
international trade
Technology is a constantly changing topic area and learners do not need to be aware of specific changes in
technology. However, it is useful to discuss recent changes in technology and how specific business may have
been impacted. Some examples include:
 how new smartphone technology and fibre optics and 5G internet access has changed social media
businesses?
 how has containerisation changed import and export businesses?
 what are the likely implications of self-driving vehicles on businesses such as Amazon?
 how has the dominance of streaming services, such as Netflix, changed the movie industry?
The focus here should be on international trade/businesses.
6.1.6 International
The advantages and
disadvantages that a
multinational might
Learners analyse the advantages and disadvantages of the multinational organisation they focused on in the
previous activity, preparing a short presentation to give to the whole class. (I)
103
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
bring to a country
Relationships
between
multinationals and
governments
6.1.7 Environmental
KC1 Change
KC2 Context
KC3 Decisionmaking
How physical
environmental issues
might influence
business behaviour
The impact of the
growing importance
of sustainability on
business and
business decisions
Divide the class into groups to discuss the relationship between the multinational businesses they have collectively
researched and the government of their country. Groups prepare a short presentation on the benefits and
disadvantages to the government. (I)
www.economist.com/news/special-report/21596667-relationship-between-business-and-government-becomingincreasingly-antagonistic
Learners identify a business where each of the following environmental issues may affect it in a positive or
negative way (learners may need to look at more than one business to cover all these issues):
 sustainability of raw materials
 pollution
 a ‘green’ supply chain
 packaging (reducing and recycling)
 carbon emissions
 environmental laws
 disposal of waste.
Learners discuss the business(es) they identified and their conclusions with the whole class.
Many businesses create extra value in their products and services by engaging positively with environmental
concerns. By encouraging recycling, using cleaner production methods, etc. many businesses have found that
customers are willing to pay more to balance the additional costs. This shows that any external influence can be
an advantage as well as a disadvantage to a business.
www.tutor2u.net/business/gcse/external_environment_business_environment.html
6.1.7 Environmental
How a business and
its stakeholders may
use an
environmental audit
Learners complete a basic environmental audit on your school/college. This should include:
 identify ways in which the school impacts on the environment; energy usage, paper, plastic etc.
 how the school/college could improve its environmental impact
 what targets the school/college already has on reducing/minimising its impact on the environment and
how these should change. (I)
If the school/college is large then this could be divided into departments to give learners a realistic task. Discuss
the benefits to the school/college of such an audit.
www.youtube.com/watch?v=MchifB1kw2w – video about being an environmental auditor.
www.youtube.com/watch?v=8qqYlNOyLQ8 – video about environmental auditing.
104
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
6.2 Business strategy
6.2.1 Developing
business strategy
KC6 Strategy
The meaning and
purpose of business
strategy
The meaning and
purpose of strategic
management:
analysis, choice and
implementation
Learners have already been introduced to the idea of strategy in section 1.4.1 (business objectives). As a link
between the objectives of a business and its tactics. In this syllabus learners need to be able to analyse and
evaluate past strategies that a business has used (or is planning to use) and to be able to recommend future
strategies. Strategy is about the three elements of strategic management:
 strategic analysis – techniques and analysis of the internal and external elements of a business to give
information to be able to make a strategic choice to meet its objectives
 strategic choice – techniques and analysis of information to come to a decision about the best way
forward for a business to meet its objectives
 strategic implementation – techniques and analysis to turn a strategy into a way forward for a business.
A good introduction will be to use a case study and discuss:
 the purpose of strategic management for the business
 how the business has used strategic analysis
 how the business has (or will) make the strategic choice between options
 how the business has (or will) implement the strategy.
Any Paper 3 case study can be used for this activity, for example 9609/33 Jun 2018 (F)
6.2.1 Developing
business strategy
KC6 Strategy
Approaches to
develop business
strategy, including:
– blue ocean
strategy
– scenario planning
– SWOT analysis
– PEST analysis
– Porter’s five forces
– core competence
framework
– Ansoff matrix
– force field analysis
– decision trees
Learners need to be able to use each of the techniques and interpret the data provided by each technique. A good
activity is to give individual learners a technique to ‘teach’ to the rest of the group. Each learner should provide:
 a presentation on how to use the technique
 a set of notes to accompany the presentation
 an example of a past examination question to sue the technique. (I)
Some activities to aid understanding of each technique include:
Blue Ocean strategy: blue ocean strategy is about pursuing low-cost innovation. A good example of blue ocean
strategy is when Nintendo launched the Wii into the games market. Learners should investigate Nintendo’s launch
of the Wii and analyse how the business managed to differentiate the product and thereby create a new space
within the console market.
Learners produce a report, including:
 who were the main competitors in 2006 in the games/console market?
 how did Nintendo achieve a low-cost strategy by developing the Wii (compared to the competitors)?
 what benefits did Nintendo gain from their product differentiation? (I)
105
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
Extension activity: learners look at the Smartphone industry and see how blue ocean strategy could be applied.
https://en.wikipedia.org/wiki/Blue_Ocean_Strategy
www.blueoceanstrategy.com/what-is-blue-ocean-strategy/
Scenario planning: scenario planning is about a business developing ‘what if’ scenarios and looking at the
decisions that might need to be made in each scenario. Learners should use scenario planning on their
school/college. This can also be done on a local business with which the learners are aware. This can be done as
a whole group activity:
 create a mind-map of potential future scenarios – things which might happen that will affect the
school/college. For example, a large increase in student numbers, a year of poor examination results,
etc.
 choose one (or give different teams one each) to develop further. Depending on time (and the nature of
the scenario) it may be necessary to look at how this scenario plays out over a number of years
 identify the internal and external forces which may help and hinder the school/college (this could be tied
into a SWOT and PEST analysis or kept distinct for ease of understanding)
 develop the timeline of the scenario – what is likely to happen and require a response from the business.
What are the key decision points that will need to be addressed?
 what decisions should the school/college make at each decision point to meet its objectives and try to
overcome the constraints? These can be debated and votes taken over the best route to follow
 evaluate the likely outcomes based on the decision made. Are there elements of the school/college’s
policies that should be amended now to avoid any of the issues? Is the business as prepared as it could
be to face this potential scenario?
A step-by-step guide to scenario planning www.professionalacademy.com/blogs-and-advice/a-step-by-step-guideto-scenario-planning
Some templates to use to visually represent scenario planning https://online.visualparadigm.com/knowledge/scenario-planning/scenario-planning-templates-and-examples/.
SWOT analysis: start a SWOT of the school/college. Use the board to produce and structure a list of the
strengths, weaknesses, opportunities and threats that learners identify. Learners produce a written strategy based
on one or two strengths, weaknesses, opportunities and threats from the completed SWOT, such as.
 a strategy to overcome a weakness using an opportunity
 a strategy to address a threat with a strength. (I)
In groups learners analyse a local business using a SWOT framework and produce a written strategy for the future
based on this analysis.
106
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
SWOT (strengths, weaknesses, opportunities, threats) is a well-known but sometimes misused technique.
Identifying strengths, weaknesses, opportunities and threats is only the first step – more important is being able to
use the findings to develop a strategy. This activity could be done at the same time as the following activity on
PEST analysis by dividing the class into two –half doing SWOT and half doing PEST. Threats and opportunities
both represent potential changes to the business environment.
www.mindtools.com/pages/article/newTMC_05.htm (article)
PEST analysis: discuss the PEST influences on the school/college and use the board to produce a list of the
political, economic, social and technological influences identified. Learners identify one or two of the most
important PEST influences on the school/college and write a strategy to overcome them. (I)
In groups learners analyse a local business using the PEST framework and devise a strategy to overcome the
most important influences they identify. Each group presents its findings to the class.
Follow this with a class discussion on how SWOT and PEST can be used together to provide information to a
business for planning future strategies. Also use this discussion to collectively produce a mind map of the
advantages and disadvantages of SWOT and PEST analysis.
PEST (political, economic, social and technological) is a well-recognised form of analysis on the external
influences facing a business. Like SWOT the important aspect in terms of Strategic Management for PEST is to
use the outcome to form and analyse strategy. Many textbooks use PEST, however there are some external
influences not covered by PEST (such as demographics, ethics, environment). Although PEST may be used, it is
worth teaching learners to look at all the external influences even if they do not fit into a PEST framework.
Core competence framework: select a business and learners analyse it using the Core Competencies. On
completion, learners write a draft letter to the Managing Director of the business suggesting a business strategy
based on their analysis. (I)
Follow this with a class discussion on the usefulness of using the core competencies to analyse a business.
To develop skills in looking at this in a specific business context, set learners the following essay question, 'To
what extent is success in the computer manufacturing industry dependent on developing core competencies?'
A core competence is something a business does or has that gives it a competitive advantage.
107
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
The business you select for the first task can be any business in any sector, but learners must be able to access
enough information to undertake the analysis.
A good way to help less able learners develop a strategy from the Core Competencies is to ask them to find a
unique selling point (USP) based on the competences and write the strategy around how to implement it. This will
also help structure their draft letter.
https://en.wikipedia.org/wiki/Core_competency#:~:text=A%20core%20competency%20is%20a%20concept%20in
%20management,of%20companies%27%20competitiveness.%20Core%20competencies%20fulfill%20three
%20criteria%3A
Porter’s five forces: introduce the Porter analysis matrix and learners describe the forces acting on a local retail
business they are familiar with in these terms. If possible, arrange a trip to visit the business (or go and see it in
operation) to help to bring the ‘five forces’ to life.
Put learners into groups of five and give them an industry to look at that they are already familiar with. Ask each
group to use Porter to analyse the 'forces' in that industry, with each learner focusing on a separate force.
On completion each group reports back to the class, which then uses the findings to discusses how competitive
that industry is. Porter’s Five Forces is a way of analysing the level of competition within an industry. While
terminology varies, these forces include:
 threat of new entrants
 threat of substitute products/ services
 supplier power
 buyer power
 competitive rivalry.
www.mindmeister.com/291731392/porter-5-forces-analysis-video-game-sector (mind-map on the video games
market)
Ansoff’s matrix: hand out a series of mini business case studies that reflect each quadrant of the Ansoff Matrix.
Learners analyse and discuss the risk of each strategy and (if possible) the outcome. Suitable examples include:
 market penetration: introducing a new flavour of chewing gum
 product development: the introduction of salads to McDonalds
 market development: iPad and iPhone as follow-on to the iPod
 diversification: Virgin and the many different businesses it operates.
In groups of four learners to role-play a managers’ meeting for a local business. Each learner advocates a different
108
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
strategy (market penetration, product development, market development or diversification). By focusing on the
potential risk and the possible rewards of each approach, learners then decide which strategy to implement. Each
group reports its decisions to the class for wider discussion and feedback.
The Ansoff matrix is only useful when used to analyse risk and potential reward. Stress to learners that simply
identifying a given strategy as being in a particular quadrant is only the first part of the process of analysis.
Force field analysis: learners look at a decision they have made or are about to make. What are the forces for
and against the decision? How strong is the influence of each of these forces? Learners score each force, and add
up the scores for and against, sharing their scores with the class.
As a class, choose a local business as a context for discussing the forces acting upon it. Some useful elements
that should be covered in this discussion are:
 available resources – traditions
 vested interests – organisational structures
 relationships – social or organisational trends
 attitudes of people – regulations
 personal or group needs – present or past practices
 institutional policies/norms – agencies
 values – desires
 costs – events.
Once learners are comfortable with using force field analysis, ask them to answer the following questions:
 explain what is meant by the term 'force field analysis'
 analyse one benefit for a business of using 'force field analysis'
 evaluate the usefulness of force field analysis for a business which is developing a strategy to expand
into another country.
Force Field Analysis requires a context upon which to base analysis. In this respect it can be a difficult topic as it
requires the learner to adapt their learning.
Some notes on Force Field Analysis and a link to a video:
www.mindtools.com/pages/article/newTED_06.htm (article and video)
https://en.wikipedia.org/wiki/Force-field_analysis
Decision trees: hand out a series of mini business case studies with suitable quantitative questions to be made
and learners construct a decision tree, calculate the expected monetary values and use the results to select the
109
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
most appropriate strategy for each one. Start with easy decision trees to allow learners to build up their skills and
then ask them to progress on to more complicated ones.
Class discussion to share what has been learned and use this to develop a 'big picture' summary. As part of this,
hand out a sheet of all the terms and elements of a decision tree that learners can keep and refer back to.
Paper 3 past papers and textbooks can be a good source of suitable case studies for the individual task.
Decision trees with more than one decision node are likely to be the ones learners find most difficult.
The most important aspect is to make learners aware of the requirement to choose the highest option at a decision
point (a square) but to add up the values at a chance node (a circle). This is a common source of error.
Wikipedia page about decision trees:
https://en.wikipedia.org/wiki/Decision_tree
Give groups of learners one of the decision trees from the previous activity with the calculations completed.
Provide them with sufficient detail on the business context for that decision tree and then ask each group to work
in two teams arguing for and against the decision chosen respectively.
Add complexity to the task by handing out a number of options and/or decisions to be made within the decision
(not just two) together with the required quantitative and qualitative data. Ask each group to again come up with
arguments for and against each option and then to come to a mutually agreed judgment over their preferred
option.
Extension activity: set the following essay question, ‘To what extent is a decision tree the most effective way to
decide on business strategies? Justify your view’. Generally, learners will be expected to argue for and against the
outcome of a decision tree. Some learners find arguing against a quantitative piece of data difficult, but this will be
essential in coming to a balanced judgement.
6.2.2 Corporate
planning and
implementation
KC6 Strategy
The meaning and
importance of
corporate planning
Learners will have already been introduced to the idea of a business plan in section 1.1.3 (Business plans), so the
distinction between a business plan and a corporate (strategic) plan needs to be the starting point.
The business plan is usually a starting point for an organisation, often created at start-up or to gain finance.
Whereas corporate planning is about planning the strategic direction of a business, often for the next 3-5 years
and usually focusses on achieving the business objectives, such as growth. The corporate plan requires learners
110
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
to apply everything they have learned throughout the course, so this section would normally be completed at the
end of the A Level course.
Learners should work as a team (if the group is large then use more than one team) to develop an integrated
corporate plan based a real businesses strategic vision. Each learner (or a small team of learners) can focus on
one business area covered by the specification:
 Business (Section 1)
 Human resource management (sections 2 and 7)
 Marketing (sections 3 and 8)
 Operations management (sections 4 and 9)
 Finance and accounting (sections 5 and 10)
 The business environment (Section 6).
Any large business can work as a focus for this activity as long as there is enough research material available and
the learners have a basic understanding of the business. Some examples could include:
 Samsung www.samsung.com/levant/aboutsamsung.html/aboutsamsung/
 Tesco www.tescoplc.com/media/392349/tesco_ar17_6drivers.pdf
 Tata www.tata.com/tsmg
Each learner or team should focus on decisions that need to be made within their given area to meet the business’
objective and produce a report describing the importance of their area to achieving the strategic objective. (I)
Each learner or team presents their ideas to the entire group and bring their ideas together to show the importance
of a combined and integrated corporate plan.
Extension activity: article about the importance of corporate planning,
www.economicsdiscussion.net/management/corporate-planning/corporate-planning/32471
For consolidation: any past Paper 3 will have a future strategic options for a business. Any of these can be used to
answer the following question: ‘Evaluate the importance of strategic planning for…’ For example, 9609/32 Mar
2020 ‘Evaluate the importance of corporate planning for FE when implementing Option A’.
6.2.2 Corporate
planning and
implementation
KC3 Decisionmaking
The meaning of
corporate culture and
its impact on
business decisionmaking
Give groups of four one type of corporate culture from the following list:
 power
 task
 entrepreneurial
 role
111
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity

KC6 Strategy
person.
Learners investigate and present in a table as many businesses as possible which have that type of culture.
Learners pick one business that demonstrates the culture type their group looked at and analyse how that culture
type has influenced (or might influence in the future) the strategy of that business.
Class discussion about the different corporate cultures each learner encountered during the previous task. As part
of this, develop a mind map on the board to draw together the common elements of these cultures and illustrate
how important corporate culture is in developing future strategies.
The identification of a culture type is good context, but it is the link to strategy that is the more important skill to
develop.
www.tutor2u.net/business/strategy/culture-types.html
For consolidation, 9609/23 Ju 2020 Q7 (F)
6.2.2 Corporate
planning and
implementation
KC1 Change
The meaning and
importance of
transformational
leadership
KC6 Strategy
Strategic management has to be led and the importance of leadership to transform a business and meet its
strategic objectives cannot be underestimated. Use the business that was the focus of the corporate planning
section to discuss the importance of a transformational leader to implement the strategic decisions that the class
found. Learners should investigate a transformational leader and the role they played in business success. Some
examples could include:
 Steve Jobs (Apple)
 Richard Branson (Virgin)
 Oprah Winfrey (media)
 Jeff Bezos (Amazon)
 Craig Menear (Home Depot).
Learners prepare a presentation about how their given leader changed the business and the importance of their
role in the transformation. This activity could coincide with a visit/talk form a local businessperson, who could then
become the focus of the project.
For consolidation, most Paper 3 case studies have a named leader who has played a role in the transformation of
the business. This can be used to answer the question, ‘Evaluate the importance of transformational leadership to
the success of the business’ (20 marks) (F)
6.2.2 Corporate
planning and
The management
and control of
Learners research and write a report on the process of change management either using one of the case studies
in the links below or any suitable local business they are familiar with. Their report should set out:
112
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
implementation
strategic change
KC6 Strategy





the need for the change taking place
the need to manage that change
the process undertaken to achieve it
the importance of change management to the stakeholders of the organisation
the degree to which the original objectives were achieved. (I)
Hand out a suitable business case study and learners discuss:
 the techniques that may be appropriate for managing change successfully within that organisation
 the development of future strategies to successfully manage change.
The websites below have good examples of well-known examples of businesses which have encounters and
managed change.
www.tutor2u.net/blog/index.php/business-studies/comments/researching-the-royal-mail-a-great-case-study-inchange-management (UK Royal Mail case study and further links)
https://insights.profitand.com/blog/real-life-examples-of-successful-change-management-in-business real
examples of change management.
Past papers and textbooks can be a good source of suitable case studies for the whole class task.
www.businessballs.com/changemanagement.htm (general theory)
www.change-management.com/tutorial-change-process-detailed.htm (tutorial)
For consolidation, most Paper 3 case studies include change within the business. Use the following questions with
a suitable case study: ‘Evaluate how the business can effectively manage its strategic change’ (20 marks), or
‘Evaluate the importance of effective change management to the success of the business’ (20 marks) (F)
6.2.2 Corporate
planning and
implementation
KC1 Change
KC6 Strategy
The meaning and
importance of
contingency planning
and crisis
management
As a class look at the school’s/college’s policies for contingencies, e.g. the fire drill. Discuss:
 why does the school/college have a plan in place?
 how often is it tested?
 what is the consequence of not having a contingency plan?
Learners consider to what extent does every contingency need to be planned for? Can learners come up with
scenarios in or out of school/college that could/should not be planned for? Why is this?
Using a recent business crisis, ask the class to analyse the business’s response and what it could have done
better. Use local examples where possible, or ones learners will be aware of, e.g. the Fukushima nuclear disaster.
As part of their analysis, learners investigate the lessons learned from the crisis.
In groups learners role-play a business facing a crisis. Give each group a business objective to plan for – this
113
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
6.1 External influences on business activity
could be something as simple as planning for a new competitor opening in the town. After a suitable time interval,
add a crisis into their scenario. Ask each group to think about what the business should do and produce a written
plan for dealing with the crisis. Each group goes through their plan with the whole class for discussion and
feedback. Crisis management and contingency planning is best taught in contexts that learners are aware of. This
may mean responding to the news and local events.
For consolidation:
 9609/33 Jun 2020 Q7 (contingency planning)
 9609/33 Nov 2017 Q7 (crisis management) (F)
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
114
Scheme of Work
7 Human resource management (A Level)
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
7.1.1 The
relationship between
business objectives
and organisational
structure
7.1.2 Types of
structure: functional,
hierarchical (flat and
narrow), matrix
KC6 Strategy
The purpose and
attributes of an
organisational
structure such as
flexibility, meeting the
needs of the
business, allowing
for growth and
development and
encouraging
intrapreneurship
The advantages and
disadvantages of the
different types of
structure
7.1.2 Types of
structure: functional,
hierarchical (flat and
narrow), matrix
KC1 Change
Using examples from the internet or textbooks, discuss different organisational structures with learners. In
particular look at a:
 flat hierarchy
 tall/narrow hierarchy
 matrix structure
 structuring by product
 structuring by function
 structuring by geographic area.
Give learners a specific organisation (a local one if possible) and ask them to describe and analyse (advantages
and disadvantages) the structure at that organisation, categorising it into one of the structural types discussed
above. They then evaluate in writing the suitability of that structure for the organisation’s stated business purpose
(growth, intrapreneurship etc.). (I)
Class discussion on the reasons for changing organisational structure and the ways in which it may change.
www.youtube.com/watch?v=LCAAivdxVTU – video explaining organisational structures.
Why some
organisations are
structured by product
and others by
function or
geographical area
For consolidation 9609/31 Jun 2020 Q3 (F)
The reasons and
ways structures
change e.g. due to
growth or delayering
Provide groups of learners with an organisational chart of the school/college (help them develop this if it doesn’t
already exist) which they label with full explanations of the following key terms:
 chain of command for the business teacher highlighted
 span of control of one member of the senior leadership
 responsibility of one member of middle management
 lines of authority for one member of middle management
 an explanation of how delegation can take place
 an explanation about the centralisation/decentralisation involved.
The features of a
formal structure:
levels of hierarchy,
115
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
chain of command,
span of control,
responsibility,
authority, delegation,
accountability,
centralised,
decentralised
Learners write a letter/report identifying to the Head Teacher/Principal how the organisational structured could be
improved. This should contain an analysis of the current structure and justifications for the changes
recommended. (I)
Broaden this by giving learners an organisational structure from other business types to label and analyse in the
same way so they develop and practice their skills in using the correct terminology. Have learners suggest any
informal structures that may exist in the business and whether these benefit the stakeholders. The precise use of
correct terminology is essential in this area of the syllabus.
Delegation is a common area of misunderstanding. Although responsibility for performing a task can be delegated,
accountability cannot. This can be actively demonstrated in the classroom by pretending to give a learner a task,
such as writing school reports for the class. If the learner then did not complete them, who would get the blame?
7.1.3 Delegation and
accountability
KC3 Decisionmaking
The relationship
between delegation
and accountability
Learners use case studies and analyse the use of delegation and its link to accountability in different business
contexts. Broaden this out into a class discussion on the appropriateness of delegation, focusing in particular on
the difficulties of doing it and the times when it may be inappropriate.
The processes of
accountability in a
business
In groups learners examine delegation in relation to the other topics already covered in this area of the syllabus –
leadership, motivation, employee/employer relations and communication (if covered at this point). Give each group
a different area to look at. Each group reports back their findings to the class. (I)
The impact of
delegation on a
business
Textbooks and the internet are a good source of case studies for this activity.
https://en.wikipedia.org/wiki/Delegation
https://en.wikipedia.org/wiki/Accountability
Extension activity: www.youtube.com/watch?v=aZK3zS7l848 a video about the art of delegation
www.youtube.com/watch?v=tRhoaRlyeq8 – the obstacles of accountability
Divide the class into two groups – one to research motivation theories and one to look at motivation in practice.
Each group then finds specific business examples of when delegation is an advantage and when it is a
disadvantage to the motivation of workers. Each group produces a written report or presentation for the class. The
ability to bring important topics together in this way is an essential element of successful A Level study.
7.1.4 Control,
authority and trust
The relationship
between span of
Using a business and organisational structure already studied, allocate groups of learners a job role at a different
level in that organisation’s hierarchy. Learners role-play a meeting called to focus on a task that has not been
116
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
KC3 Decisionmaking
7.1.5 Centralisation
and decentralisation
KC1 Change
control and levels of
hierarchy
completed, but which has been delegated down the span of control. Discuss the difference between who has the
authority for the task and who has the responsibility for the task.
The difference
between authority
and responsibility
Learners evaluate the possible impact of this scenario on the stakeholders involved and consider the wider
conflicts that can arise between managers and the workforce over delegation, producing a mind-map showing
where and why these impacts occur. (I)
The conflicts
between control and
trust that might arise
when delegating
It is important that learners develop an understanding of the relationship between span of control and levels of
hierarchy, the difference between authority and responsibility and the conflicts that arise between control and trust
when delegating. Discuss:
 does there need to be a distance between management and workers?
 what happens when the lines get blurred?
 is a good manager one who avoids conflict, or one who causes it by constantly pushing forwards?
The impact of
centralisation and
decentralisation on a
business
Introduce centralised and decentralised organisational structures. Learners mind-map the potential advantages
and disadvantages of centralised structures. Discuss and refine these in relation to businesses that do use
centralised structures.
Learners draw up a table of the potential advantages and disadvantages of decentralised structures. On
completion, discuss and refine these in relation to businesses that do use decentralised structures. (I)
Follow this by allocating pairs of learners a local, national or international business they have already studied. One
learner argues the case for that business using a centralised structure, the other a decentralised structure. Give
appropriate preparation time and then limit each debate to 5–10 minutes in front of the whole class, with a short
time afterwards for questions and a vote on which case was more convincing. Discuss, should businesses develop
strategies to centralise their business or to decentralise? In most cases the most important aspect is the context
and the business’s ability to adapt their strategy in relation to this.
www.tutor2u.net/business/people/org_centralisation_decentralisation.asp
www.youtube.com/watch?v=M1sV6YhxQD8 – video about centralisation and decentralisation.
For consolidation:
 9609/32 Mar 2019 Q1 (centralised AO4)
 9609/32 June 2020 Q2 (decentralised AO4) (F)
7.1.6 Line and staff
Examples of and
distinctions between
Play ‘staff management charades’ – write a number of different line and staff relationships on pieces of paper and
put them into a box. Learners pull out one piece of paper and mime the relationship that they have been given.
117
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
KC3 Decisionmaking
line and staff
functions and the
conflicts between
them
Hand out a case study of conflict between staff and line managers based on any business where there is a clear
distinction between line and staff relationships. The study should start with a simple set of questions requiring
learners to identify the line and staff relationships. Questions should then progress to explaining the difference
between the relationships. (I)
7.2 Business communication
7.2.1 Purposes of
communication
KC6 Strategy
Situations in which
communication is
essential
Learners list as many examples of communication as they can in their immediate environment in five minutes.
Encourage them to look for types of communication they may not find immediately obvious, such as:
 fire alarm
 noticeboards
 logos on clothing
 signs
 markings on the floor/walls. (I)
In groups learners pool their results together and develop a mind-map, discussing the outcome. Learners design a
fire procedure, including how to communicate meeting points, contingency plans and alarm system. They identify
the potential challenges in communicating this critical information effectively.
Learners apply the communication methods identified in their mind-maps to a business they have already studied
and write a brief report on the types of emergency communication that business may use and why they are
appropriate. Communication is an area all learners have experience of. Bringing out this experience will help them
understand the importance of effective business communication. Communication should not just be a coincidence
of what is already in place, but a managed device to enable the business to achieve its objectives.
7.2.2 Methods of
communication
The standard
methods of
communication used
in business: spoken,
written, electronic,
visual
The strengths and
weaknesses of the
different methods of
communication
Learners will have encountered numerous methods of communication in the past. Start with creating a mind-map
of the different ways in which they communicate. Make sure each broad method is mentioned (i.e. spoken, written,
electronic and visual).
Give learners scenarios and ask them to discuss what is the best method of communication in each scenario, e.g.:
 asking someone out for a date
 dismissing an employee
 inviting someone to your wedding
 instructions on how to use a piece of machinery.
Arrange a visit to a business or local supermarket so learners can apply their understanding of communication in a
118
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
real setting. Ask groups to identify as many communication methods in that business as they can. As in the
previous activity, this should include looking for less obvious/direct methods.
Ask learners to analyse one of the communication methods they spotted, how and why this method is used and
what the potential advantages and disadvantages of this method are for the context in which it is used.
Extension activity: learners identify how each method of communication could be improved (i.e. placement,
volume, colour, medium etc.). (I)
Class discussion about the ways in which different businesses may use different communication method. The
choice of communication methods employed by a business must be in line with the business’ strategy.
For consolidation, 9609/33 Nov 2018 Q5 (AO4) (F)
7.2.3 Channels of
communication
How communication
works within a
business
The difference
between one- and
two-way
communication; the
difference between
vertical and
horizontal
communication
Write out the following onto pieces of paper and fold them up, keeping separate piles for each of the four
categories:
 different stakeholders in an organisation (i.e. manager, worker, customer ,etc.)
 communication channels (1-way, 2-way, horizontal, vertical)
 methods of communication (from the previous activity)
 a variety of communication ‘aims’.
Pairs of learners to each pull out a piece of paper from each category and with the given information role-plays
how the aim can be communicated. As each role-play takes place, the class takes notes and offers improvements
to the process. Discuss how the different elements could be changed to make the communication better. Using
this information, then learners come up with the most inappropriate communication channels and methods for:
 making a worker redundant
 informing customers of a safety concern with a product
 promoting a manager.
Class discussion about what it is that makes these communications so inappropriate and how this knowledge
could be applied to a range of different business types.
7.2.3 Channels of
communication
KC1 Change
Problems associated
with different
channels of
communication
Learners discuss the barriers to effective communication and write them on the board. Mind-map this list into
possible categories. Develop understanding of this with a series of short mini-activities to exemplify different types
of communication barriers such as.
Physical barriers:
119
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
Barriers to
communication and
how to overcome
them


Chinese whispers: try to pass a message around a room
charades/Pictionary: communicating without using your voice
Perceptual barriers:
 optical illusions (many are available on internet)
 written messages that are ambiguous/commonly misread
Emotional barriers:
 the reaction to text or social network messages when smilies and additions such as LOL are and are not
added
Cultural barriers:
 different colour associations, etiquette, etc.
Language barriers:
 words that have more than one meaning (pants, chips, etc.)
Gender barriers:
 differences in approaches to communication between women and men (most effective in a mixed group).
Ask one learner to step outside the room. Another learner then draws pictures of some simple things on a piece of
paper such as a house, sun, tree, path. The learner outside the room then has to come back and replicate the
picture without seeing it and only using instructions from the drawer. The communication can only be one way (no
questions) and the drawer cannot see the progress being made. This can be repeated by building in more or
different barriers as desired. Class discussion about how this activity can be applied to businesses.
There is an opportunity in this section to develop learners interpersonal and communication skills beyond the
Business syllabus. Since communication is an essential part of an examination, any development of skills may
benefit learners in their examinations. Barriers to communication change and the businesses and managers ability
to adapt will be one of the key features to successful communication.
www.skillsyouneed.com/ips/barriers-communication.html
www.youtube.com/watch?v=kaH4xfodN3w
7.2.5 The role of
management in
facilitating
communication
KC3 Decision-
The role of informal
communications
within a business
Ways in which
communication can
Learners often forget the importance of informal communication (communication which is not through a formal
communication method in an organisation). Learners write a diary from a typical day at school/college of all the
different forms of communication they have encounters. They should divide these up into formal (setup by the
school, such as a lesson) and informal. They will probably encounter many more forms of informal communication
during the day – the same is true in business.
120
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
making
KC4 Enterprise
influence the
efficiency of a
business
Ways of improving
communication in a
given situation
Ask learners to think about their first day at school/college. Did they find out the following from formal or informal
communication methods?
 where the bathroom/toilet facilities are?
 where to have break/lunch?
 how to behave in a lesson?
 when they can chat to their friends?
 what time school/college finishes?
Assuming some of these occurred through informal communication (for at least a few learners), discuss why
informal communication is important. Learners share their ideas and discuss the importance of communication in a
business in terms of efficiency. Divide the class into two groups – one looking at formal communication, the other
informal communication. Ask each group to come up with examples of business scenarios where formal/ informal
communication is essential to improving efficiency.
A good opportunity to discuss what role management has in establishing and maintaining successful
communication. Use a business case study and/or focus on a local business or the school/college and ask
learners to suggest ways in which the organisation could improve communication.
7.3 Leadership
7.3.1 Leadership
KC2 Context
KC3 Decisionmaking
KC4 Enterprise
The purpose of
leadership
Leadership roles in
business (directors,
managers,
supervisors, worker
representatives)
The qualities of a
good leader
To elicit the purpose of leadership, ask learners the leadership roles they know in a business. In groups learners
role-play a meeting involving:
 a director
 a manager
 a supervisor
 a worker representative.
The aim of the meeting is to come to a resolution about a dispute/conflict, e.g. longer working hours. Allocate roles
to learners and give them time to think about what their role’s objective is (beyond the objective of the business)
and what their leadership responsibilities are.
After the role-play, bring the whole group together to identify the leadership qualities that learners showed, or
(more likely) the qualities they should have shown:
 how could each type of leader have improved their leadership?
 should they have been thinking of their subordinates more or were they focussing on their own issues?
 do learners know any managers like the ones portrayed?
For the role play, pick a business that is well-known to learners, e.g. in the news or locally familiar) so they
121
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
understand the context. Other aspects of the role play you need to manage include:
 the line relationships between the workers (who is in charge of whom)
 the individual stakeholder objectives (i.e. directors may have a profit motive, managers may be looking at
their own utility/benefits, supervisors may be looking to minimise workload and worker representatives
may be focussing on higher pay)
The wider leadership responsibilities of each leader (directors have a responsibility for the whole business,
managers have a responsibility for their department/area, supervisors have responsibility for operations in their
area, worker representatives have responsibility for the workers).
7.3.2 Theories of
leadership
Key leadership
theories: trait,
behavioural,
contingency, power
and influence and
transformational
Ask learners to investigate each of the main theories of leadership. Each learner should prepare a presentation
and notes handout for their given theory. For example:
 train theories
 behavioural theories
 contingency theories
 power and influence theories
 transformational theories.
Knowledge of specific theorists should not be necessary for the examination, but relevant examples may prove
useful.
Class discussion about the relevancy of each theory in different organisations. For example:
 which leadership theory is most likely to be used in the armed forces?
 which leadership theory is most likely to be used in a University?
 which leadership theory might be most appropriate in a manufacturing factory?
 which leadership theory might be most useful when managing people remotely?
www.mindtools.com/pages/article/leadership-theories.htm – article about leadership theories.
7.3.3 Emotional
intelligence/emotiona
l quotient (EQ)
KC2 Context
KC3 Decisionmaking
Goleman’s four
competencies of
emotional
intelligence: selfawareness, social
awareness, selfmanagement
and social skills
Introduce Golman’s four competencies and discuss the nature of each of the elements. How would learners rank
themselves on each scale?
Give groups of learners one of Golman’s four competencies. They devise five questions which aim to find out a
person’s emotional intelligence on that competency. They give the five questions to another group who analyses
the questions, looking for aspects that are good and areas where improvements can be made. When learners
have a good understanding of each competency, give them a business scenario to analyse and evaluate the
usefulness of the competencies. Scenarios could include:
122
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure



hiring new staff
making existing staff redundant
disciplining workers.
Learners produce a written report identifying scenarios where the competencies are more useful than others. (I)
Some substantial teaching is needed here about the nature of the competencies in the first part of this activity.
For consolidation, 9609/22 Nov 2018 Q2c (AO3) (F)
7.4 Human resource management (HRM) strategy
7.4.1 Approaches to
human resource
management (HRM)
The difference
between ‘hard’ and
‘soft’ HRM
Organise a class debate about the uses of ‘hard’ and ‘soft’ HRM. One half of the class should argue for the use of
‘hard’ HRM whilst the other should argue for the use of ‘soft’ HRM.
Before starting, instruct each side to research examples of businesses/scenarios that illustrate the best use of their
approach. The conclusion to the debate should not be a definitive answer, but a 'depends upon' conclusion.
Showing with this that ‘context is all’ will help learners develop a valuable analytical skill for many areas of the
course. Management is a key theme throughout the whole People in organisations unit.
KC2 Context
www.tutor2u.net/business/people/hrm_hard_soft.asp
7.4.1 Approaches to
human resource
management (HRM)
KC1 Change
Flexible working
contracts:
advantages and
disadvantages of
temporary contracts
or flexible contracts
including zero hours
contracts, part-time,
full-time, annualised
hours, flexi-time,
home working, shift
working, job sharing,
compressed working
hours, the gig
economy
Give learners a business which uses a wide range of different employees, such as a hospital, technology firm or
supermarket.
Learners develop a table showing the different contract types (permanent through to flexible and then
temporary/zero hours) on one axis and the different job roles within their allocated organisation on the other. They
then look at the potential use of each contract type for each job role and assess the opportunities/barriers.
Learners should find at least one job role which would be appropriate for each type of contract.
Organise groups to role-play different stakeholder responses (managers, owners, employees, customers) to each
contract type. Learners should focus on the advantages and disadvantages for each stakeholder of each contract
type. Learners are likely to focus on the advantages to the business of zero hours contracts without seeing the
social and personal disadvantages. The ability to look at HRM from different perspectives is an important skill for
evaluation questions. Many businesses have been criticised for using zero-hour contracts, but is this just a way of
being customer focused by reducing costs and making products and services available when demand dictates?
123
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure
7.4.1 Approaches to
human resource
management (HRM)
KC6 Strategy
The measurement,
causes and
consequences of
poor employee
performance
Strategies for
improving employee
performance
Recap learning of the AS Level content on management and motivation in the context of improving performance.
Give learners a case study involving poor employee performance. Learners look at the causes and mind-map the
consequences of poor performance for the business and then come up with strategies to improve the
performance. All learners use the same case study. (I)
Once learners have developed their own ideas, get them to discuss these with another learner, then in groups of
four and finally bring all the ideas together as a whole class. Past papers and textbooks are a good source of case
studies for this activity. Particular strategies are not going to be definitively right or wrong. Learners should be able
to argue for different strategies and evaluate the most effective from different perspectives.
Managing poor performance is one of the most difficult management tasks. Discuss:
 how should a manager discuss poor performance with an employee?
 what happens when emotions get in the way of good management?
www.mindtools.com/pages/article/newTMM_80.htm
www.acas.org.uk/index.aspx?articleid=3011
7.4.1 Approaches to
human resource
management (HRM)
KC6 Strategy
Management by
Objectives (MBO) –
implementation and
usefulness
Learners research the management by objectives (MBO) process using textbooks, the internet and any other
relevant resources. (I)
In pairs learners analyse the usefulness of MBO. One learner should devise arguments for its usefulness and the
other arguments for not using it. These arguments should focus on the usefulness in specific situations, using
appropriate businesses already focused on in previous topics. Management by objectives is also sometimes
known as management by results (MBR). This topic is a good opportunity to discuss management and whether
objectives and tasks should be the main focus of a good manager. Discuss:
 should a manager focus on getting the task done, looking after the people under them or a combination
of both?
 does context dictate the approach?
www.economist.com/node/14299761 (article on MBO)
www.iedunote.com/management-by-objectives-mbo-process (good diagram on MBO process)
7.4.1 Approaches to
human resource
management (HRM)
KC1 Change
The changing role of
Information
Technology (IT) and
Artificial Intelligence
(AI) in HRM
This is an area where learners may know more than the teachers and a good opportunity to discuss changes in
working practices. Some areas for discussion may include:
 the increasing use of wearable technology in the workplace – to measure productivity, to enable
communication.
 the use of driverless vehicles/drones for delivery and in the service sector.
124
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
7.1 Organisational structure

the replacement of skilled labour with technology (especially AI) – can human creativity be replaced by a
machine?
The discussion should enable learners to be able to use examples of how technology is replacing and enhancing
roles within a business. This area would benefit from a visit to a business, especially if it is possible to see modern
production techniques in operation.
Extension activity: learners investigate the advantages and disadvantages of a specific piece of technology
which is being used, such as drone technology by Amazon.
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
125
Scheme of Work
8 Marketing (A Level)
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
The concept of
elasticity of demand:
price, income and
promotional
Start with Price elasticity of demand as a concept. Once the concept of PED is understood, the other calculations
follow the same basic rules.
8.1 Marketing analysis
8.1.1 Elasticity
Calculation of price,
income and
promotional elasticity
of demand
Interpretation of
elasticity results
As a class, create some market research about the class and what they would be willing to pay for a basic,
everyday item. This can be completed by taking a tally of who is willing (and able) to buy the item for each
ascending price. Using this data, learners produce calculations on the elasticity at each price of a move to another
price.
Learners use this data to make decisions about the whole school/college. If they sell the item in school/college,
what would be the optimal price? Remind them use the previous activity on developing pricing strategies to meet
marketing objectives to inform this work. Learners produce a brief report explaining their findings.
In pairs learners to change the data to make the calculations more difficult. As part of this they should try to create
one price and quality change that will be too complicated for their partner to work out. Using class data to illustrate
elasticity is a good way to bring the topic to life.
Elasticity is often taught as an abstract topic with little relationship to the rest of the syllabus. By integrating it with
topics such as price strategies and marketing objectives, learners are more likely to remember the calculations
and find the topic useful.
www.tutor2u.net/economics/revision-notes/as-markets-price-elasticity-of-demand.html (topic notes)
www.tutor2u.net/blog/index.php/business-studies/comments/celebair-price-elasticity-of-demand-exercise (activity)
Introduce and discuss the four additional relationships covered at A Level:
 income and demand
 promotion and demand.
Learners guess what a graph would look like for each (i.e. plot the relationship between the two variables). Give
groups of learners a product and ask them to guess the following:
 whether the income elasticity of demand is positive inelastic (normal good), positive elastic (superior
good) or negative (inferior good)
 whether demand for good is likely to respond well to increased promotion (elastic response) or poorly to
increased promotion (inelastic response). In reverse of course, is demand likely to respond to a decrease
in promotion in the same way?
126
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
8.1 Marketing analysis

which goods are most likely to illicit a positive cross elasticity response (complements) and which are
most likely to illicit a negative cross elasticity response (substitutes)? (I)
Each group reports to the class. Elasticity is the relationship between two variables. It is often taught as an
abstract topic with little relationship to the rest of the syllabus. Learners need context to make this a more
memorable topic.
Knowing the correct way to classify income elasticity goods (normal, superior and inferior) is important because it
defines the relationship between income and demand.
Use of the minus sign is vital in calculating the elasticities covered, especially income elasticity of demand.
www.youtube.com/watch?v=1XXhpHJTglg – video introducing elasticity as a concept.
8.1.1 Elasticity
KC2 Context
The impact of
elasticity measures
on business
decisions
The limitations of the
concept of elasticity
in its various forms
Give learners a series of elasticity data about a business. The business should be based in a context which the
learners are familiar with. This can be made up data or real data if available. This activity can be differentiated
based on learner’s ability.
 if learners need more practice (or are very able) in calculating elasticities, then use raw data
 alternatively, give learners the elasticities already calculated as a series of numbers
 alternatively, give learners the interpretation of the calculation (i.e. PED is elastic, YED is positive
inelastic etc.).
Learners discuss business decisions that could be made based on the data. For example:
 should the business increase/decrease its prices based on the data?
 should the business target higher or lower income customers based on the data?
 should the business increase its promotional spending based on the data?
As a group discuss how elasticity data can help a business make decisions and the likely impact of these
decisions on the business. Elasticity data can provide the basis for analytical and evaluative arguments to aid
business decision making. However, the elasticity data has limitations, such as:
 it is based on estimates, not actual data
 the data is only quantitative and might go against qualitative data
 circumstances/variables may change
 the external environment may change.
Learners need to be able to evaluate the usefulness of elasticity data, in context and understand these limitations.
www.youtube.com/watch?v=pyuOcDjul8s – video about the usefulness of elasticity data.
127
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
8.1 Marketing analysis
For consolidation, 9609/32 Jun 2018 Q4 (F)
8.1.2 Product
development
KC5 Innovation
The process of
product development
Sources of new
ideas for product
development
The importance of
Research and
Development (R&D)
Introduce the product development process at Disney. Focus on the three core processes – what, how, and why.
Groups of learners to come up with a product to be sold in the school/college. Encourage them to base their
creative process on the Disney one and to set up the required environment for each stage of the process. Each
group presents its ideas to the class.
Follow this up by asking learners to investigate a product which requires a large amount of research and
development, such as mobile phones, blends of coffee, cars or medicines. Learners present their findings in a
report or a poster for display. (I)
Innovation is essential in product development – but innovation doesn’t just mean coming up with new product
ideas, it also means adapting and refining existing products to extend their lifespan and market reach. A good
example of this is washing machine powder – there is constant redevelopment of what essentially is soap for
cleaning clothes.
www.huffingtonpost.com/2013/10/07/disney-pixar_n_4056840.html
Disney Stories: Getting to Digital (Lee, Madef) p.113 (available free online at www.google.co.uk/books)
The importance of research and development (R&D) depends upon the context of the business. This is an
excellent opportunity to compare and contrast different contexts to discuss the importance. For example, the group
can discuss recent developments in the following industries:
 smartphones – which firms lead in R&D and which firms simply follow the leaders. Why do some firms in
the market not spend on R&D?
 sweets/candy – the market has many new products, but it is also dominated by some brands which have
not changed for decades. Why do firms like Nestle spend on R&D when the majority of their sales come
from the most established brands?
For consolidation, 9609/32 Nov 2019 Q5 (AO4) (F)
8.1.3 Sales
forecasting
KC6 Strategy
The need to forecast
sales
Time series analysis:
calculation and use
of four period centred
Pick a business which has an obvious cycle and is familiar to learners. This could be a seasonal cycle, (e.g. ice
cream sales), a cycle relating to fixed points in the year, (e.g. accountancy services) or any other regularly
repeating cycle, (e.g. academic year). Use your chosen example as context to lead a class discussion on the need
for forecasting within the business.
Using real or made-up data, learners calculate more and more complicated moving averages and extrapolate
128
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
moving average
method to forecast
sales
forecasts into the future. Start learners with odd period moving averages (i.e. 3, 5, 7 point moving averages) and
when they are comfortable with the technique, move onto even point moving averages. Allow learners time to
progress at their own speed (I)
8.1 Marketing analysis
Extension activity: to extend mathematically minded learners, ask them to translate the calculations into a graph
and extrapolate a line of best fit that can be compared with the smoothed moving average line. To do this, they
should:
 add a column to the moving average table to allow for the calculation of cyclical variations in each time
period
 use the average cyclical variation to extrapolate data for the future
 add this as a dotted line on to the graph. (I)
Moving averages will be a relatively simple task for some learners and very difficult for others, depending on their
confidence with numerical techniques. Both odd and even point moving averages will be required. Even point
moving averages must be centred to provide relevant data for use in forecasting.
www.bbc.co.uk/schools/gcsebitesize/maths/statistics/representingdata3hirev7.shtml
www.youtube.com/watch?v=GUq_tO2BjaU – video introducing time series analysis.
8.1.3 Sales
forecasting
KC3 Decisionmaking
Qualitative sales
forecasting
The impact of sales
forecasting on
business decisions
Learners often fixate on numerical data and ignore qualitative factors when making business decisions. However,
the context of a business and especially the non-numeric factors (qualitative) can be as important as the numeric
(quantitative) data.
Use an example of a seasonal business which might use time series analysis data, e.g.an ice cream
manufacturer. Create a mind-map of the quantitative and qualitative factors which might affect sales forecasting,
such as:
 previous sales data (quantitative)
 the weather (qualitative)
 economic data (both quantitative and qualitative)
 consumer tastes and fashions (qualitative)
 decisions of competitors (qualitative).
Learners create their own (short) case study based on the factors. The case study should contain information
about how these factors might affect the business in the future. (I)
Learners swap case studies and answer the following question, ‘Evaluate the importance of qualitative factors
when the business makes decisions about future sales’ (20 marks)
129
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
8.1 Marketing analysis
When discussing any factors affecting sales forecasting (both qualitative and quantitative) it is essential that the
context is the focus for deciding what is the most useful (and least useful) data needed for decision making.
8.2 Marketing strategy
8.2.1 Planning the
marketing strategy
KC6 Strategy
The contents of a
marketing plan:
objectives,
resources, research,
marketing mix
The benefits and
limitations of
marketing planning
This builds upon the AS Level Marketing knowledge about the marketing mix (4P’s). At A Level learners are
expected to understand that a marketing strategy starts with the objectives of the business, the resources that the
business has at its disposal and the research that is completed (research has also been covered at AS Level).
One way to approach this section, is to see each of the above as a filter, that informs the marketing mix. Give
learners a generic product, a tin of vegetables with the label taken off. Inform them that the business needs to
decide upon a suitable marketing mix for the product, but that it must be consistent with the objectives, resource
and research that the business has. Either give this information to the learners, or discuss what the appropriate
objectives, resources and research might be. For example:
 objectives – to become the market leader within five years
 resources – a large factory to produce the products and a marketing budget of $1m
 research – ask learners to research the market using the internet and/or local shops.
Based on the above and the findings of their research, learners recommend a suitable marketing mix. The
analysis and evaluation of the mix should be linked to the objectives, resource and research.
When learners are asked about a marketing plan (as opposed to a marketing mix) then the additional elements of
objectives, resources and research must be included. This is a fundamental difference between AS and A Level.
For consolidation, 9609/31 Nov 2020 Q5 (F)
8.2.2 Approaches to
marketing strategy
KC6 Strategy
The need for the
marketing strategy to
be consistent with
the business, the
product and the
market
The need for and
development of a
coordinated
marketing strategy
Divide the class into groups of five learners. Give each group an unbranded product (e.g. box of tissues or
unlabelled can) for which they will come with a coordinated marketing mix. Allocate one of the following roles to
each learner in the group:
 learner 1 – price
 learner 2 – product
 learner 3 – promotion
 learner 4 – place
 learner 5 – makes sure the marketing mix achieves the stated marketing objectives (tell them what these
are).
Then invite each group to carry out the following timed role-play:
130
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
8.1 Marketing analysis

The development of
marketing strategies
that are focused
towards achieving
specific marketing
objectives


0–10 mins: each learner develops their own part of the strategy – i.e. focuses on their allocated ‘P’ –
while learner 5 makes sure the corporate objectives are understood and devises a strategy for
managing/chairing the meeting
10–30 mins: group meeting to discuss their ideas and debate the overall strategy. Learner 5 leads the
meeting and makes sure each learner gives their point of view. Instruct each group to make sure each
element blends with the others to achieve the stated objectives and remind them they might need to
change some of the proposed elements to achieve this
30–50 mins: each group designs a storyboard showing the process and outcome of their coordinated
marketing strategy.
Less able learners will often struggle to see the marketing mix as anything but a paragraph on each P. Being able
to blend the four together effectively is a key higher-level A Level year skill. Many marketing objectives have a
strong focus on the customer. Developing a coordinated market mix that best suits the customer is essential.
8.2.2 Approaches to
marketing strategy
KC1 Change
KC6 Strategy
The changing role of
Information
Technology (IT) and
Artificial Intelligence
(AI) in marketing
This is an area that is constantly changing and as such learners need to research how IT and AI is used in
marketing. Knowledge of specific applications of IT and AI is not necessary, but an understanding of how IT and AI
can be used in each area of a marketing plan is essential.
Divide learners into groups. Each group should investigate the use of IT and AI in one of the P’s of the marking
mix, providing specific examples of its use. For example:
 Product – how are new products making use of IT and AI? For example, in the smartphone industry,
gaming industry, car manufacture
 Price – how are businesses such as Amazon, using IT and AI to differentiate their pricing to different
customers? Transport companies, such as Oyster (transport for London) and Uber make use of IT and AI
in their pricing models
 Promotion – many industries are using targeted promotion through social media to inform customers and
even produce individually targeted advertising
 Place – IT and AI is allowing multiple distribution channels for businesses that did not exist in the past,
such as digital downloads. (I)
Each group should report back to the class on their findings, explaining the examples they have found.
For consolidation, ask learners to answer the following question, ‘Evaluate how Google have made use of IT and
AI in their marketing strategy to consumers’ (12 marks). This question will require learners to do some research.
8.2.3 Strategies for
international
marketing
The implications for
marketing of
increased
Lead a class discussion on the differences and similarities between local, national, and international marketing.
Choose an industry which operates at all three of these levels in your local economy, e.g. car sales, medical
131
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
globalisation and
economic
collaboration
products/services, cleaning products. Learners find examples of marketing at all three of these levels (this is most
likely to focus on promotion but shouldn’t be confined to this). How does the marketing change at each level?
What are the similarities? Learners present their findings to the class.
8.1 Marketing analysis
KC1 Change
KC6 Strategy
Learners find an example of global marketing that has been adapted to local markets. Some examples may be:
 local McDonalds that has developed their own poster to display a national promotion
 TV advert that is shown around the world with a different language voice-over
 promotions that reflect a local (or national) event, such as a religious celebration or sporting event.
Learners present their findings to the class. Finally, learners find marketing that has been adapted for specific
economic blocs, such as the EU, BRIC countries, MINT countries, etc.
Extension activity: learners specify which trading bloc they should focus on. (I)
Globalisation is a term for marketing a global product or brand by appealing to a local market. With the increased
use of technology there are more and more examples of this happening. Globalisation is a key area of change
both historically and into the future – a growing number of products now have an international market reach and
the internet provides many marketing opportunities and challenges for businesses.
www.youtube.com/watch?v=PaXSuuel5ec – video introducing the globalisation of markets
8.2.3 Strategies for
international
marketing
KC6 Strategy
The importance of
international
marketing for a
business
International markets
– identification,
selection and entry
Give groups of learners a familiar national product which does not have a large market outside its home country,
e.g. Marmite in the UK or Twinkie in the USA. Each group comes up with a marketing strategy to break their
product into a new international market. To do this, each group should:
 identify and explain the barriers to entry in the new market
 identify and explain the marketing strategy for the product
 identify the competitors in the market
 evaluate the likely success of the marketing strategy.
Each group presents its analysis to the class.
Find products for this activity which are known to your learners locally, but which are not well-known outside of the
locality or country. This activity gives a good opportunity to focus on Key Concept 6.
8.2.3 Strategies for
international
marketing
KC1 Change
Whether a business
in a given situation
should develop an
International market
Give pairs of learners a product and ask them to come up with a local marketing strategy and an international
marketing strategy for it (work already undertaken in earlier activities can be built on here). Tell one of each pair to
focus on the local strategy and the other the international strategy. Learners compare and contrast their individual
strategies and come to a judgement about which would be more effective. On completion, each pair presents their
132
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
through pan-global
marketing or
maintain local
differences
proposed strategies to the class for discussion and feedback.
8.1 Marketing analysis
KC6 Strategy
Choosing a strategy,
in a given situation,
to develop a global
market
8.2.3 Strategies for
international
marketing
KC1 Change
The factors
influencing the
method of entry into
international markets
KC6 Strategy
Groups of four learners focus on a global brand/business which they are already familiar, e.g. Coca-Cola, Ford,
Microsoft, McDonalds. Each learner looks at a different aspect of the marketing (local, national, international and
global) and produces a campaign for their allocated level. The group then tries to amalgamate the four campaigns
and tie them together with a clear overall marketing purpose.
Each group presents to the class. While watching each group present, learners analyse their campaigns in terms
of the balance between, local and pan-global marketing and feedback orally at the end of the presentations.
Use an international brand/business that learners will be familiar with. This could be the same business used in
the previous activity. Make up a new product that might be launched by this business. For example, it could be the
next Smartphone or a new food item.
Divide the class into groups. Each group is given the same product and a country and asked to think about how it
could be introduced (and changed) based on the country they are given. The countries should be sufficiently
different, for example:
 India
 US
 Australia
 UK.
Learners should think about a suitable marketing mix that would allow a successful entry into this market, focusing
on the specific differences that the market offers. The combined marketing mix should highlight the cultural,
economic and ideological differences of the given country. (I)
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
133
Scheme of Work
9 Operations management (A Level)
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
9.1.1 Location
KC2 Context
The factors that
determine location
and relocation
Using a map of the country in which you reside (and/or a larger scale if more appropriate) learners identify an
appropriate location for a number of industries e.g.:
 power station
 convenience store
 car factory
 restaurant
 coal mine
 harbour.
Use whatever examples are relevant to your community. There is unlikely to be a single correct answer, but there
are likely to be incorrect ones (such as a harbour in the middle of a desert). (I)
Give learners one of the examples used above and ask them to explain in a brief report each of the following
influences on that business relocating and justify which they consider the most important of these factors:
 geographic
 demographic
 legal
 political
 resources
 infrastructure
 marketing. (I)
Extension activity: learners research a business that they believe is poorly located. Can they explain the factors
that make the business location poor? Can they explain why the business chose to locate in that place? (I)
Learners can find the idea that a poorly-located business may still have success a difficult concept to grasp. Poor
location may be a result of many factors, such as changes to the external environment (i.e. a shift from the high
street) or a historical connection to a location.
For consolidation, 9609/22 Mar Q2d (AO4) (F)
9.1.1 Location
KC1 Change
The differences
between local,
Using a business context with which learners are familiar (takeaway food, retail etc.) learners suggest a possible
location:
134
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
KC2 Context
national and
international location
decisions
The impact of
globalisation on
location and
relocation decisions
9.1.1 Location
KC1 Change
The reasons for and
impact of offshoring
and reshoring
KC2 Context
KC6 Strategy
9.1.2 Scale of
operations
KC2 Context



locally – this could be in the nearest city
nationally – this could be in your country
internationally – anywhere in the world.
There are no right answers to this, but learners should be able to discuss the advantages and disadvantages of
each suggested location and the impact on the business.
Depending on your location, it may be that the trend is to offshore away from your country, or to reshore back
towards your country. Ask learners to find a business that has used offshoring and a business that has used
reshoring. Learners identify two advantages and two disadvantages to the business of offshoring and the same for
the business and reshoring. As with most business topics, the context of the businesses chosen is likely to provide
the best advantages to offshoring and reshoring.
www.raconteur.net/bringing-customer-service-back-to-the-uk/ – article about businesses reshoring to the UK for
call-centres.
The factors that
influence the scale of
a business
Causes and
examples of internal
and external
economies and
diseconomies of
scale
The links between
economies and
diseconomies of
scale and unit costs
Learners analyse and evaluate in a written report the benefits and problems of having a larger team using
examples such as:
 sport – swimming vs synchronised swimming
 computer gaming – one player vs multi-player
 cooking – one chef vs a team of chefs.
Follow this with a class discussion about a business that may have grown beyond its economical size. The NHS in
Britain is one example of a business which suffers many diseconomies of scale.
Then specify a large business that it known to the class and learners produce a table identifying the internal and
external economies of scale and the internal and external diseconomies of scale that business may encounter. (I)
Any businesses can be used to illustrate economies and diseconomies of scale. Use whatever businesses are
local to the school/college.
A common mistake learners make is to only remember 'bulk buying' as an economy of scale. The actual economy
of scale is a purchasing one and learners must have a larger repertoire when it comes to the examinations.
www.slideshare.net/infinityrulz/economies-and-diseconomies-of-scale
www.youtube.com/watch?v=sbI7KD9FU3Q
135
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
Managerial economies of scale are vitally important for businesses. Being able to attract and afford the best
managers may give the business an edge over competition.
For consolidation:
 9609/12 Mar 2017 Q4 (AO2)
 9609/22 Jun 2019 Q1c (AO3)
9.2 Quality management
9.2.1 Quality control
and quality
assurance
KC6 Strategy
Quality in terms of
meeting customer
expectations
The importance of
quality
The impact of
methods of quality
control on a business
The impact of
methods of quality
assurance on a
business
Quality has a double meaning in business – quality in terms of branding and quality in terms of being fit for
purpose. In this context, quality control and quality assurance are about making products and services which meet
the needs of the consumer and are therefore fit for purpose. Discuss the difference between the two different
types of quality making sure learners understand, using the board to identify characteristics of each type of quality.
Ask learners to identify what passes for being fit for purpose in terms of different products, such as:
 bread – is a value brand of bread 'fit for purpose'? At what point does a loaf of bread become not fit for
purpose?
 a car – discuss different quality issues in different countries
 medicines – to what extent are side effects a quality issue?
Once learners understand quality in terms of 'fit for purpose', give pairs of learners a different business context
and ask them to debate whether quality control or quality assurance is more appropriate for that context. On
completion, each pair briefly explains its conclusions to the class.
Hand out a list of businesses. Learners rank them by how important quality is to those businesses. In their pairs,
learners compare their rankings and discuss the differences and similarities that arise and the reasons for them.
Discuss with the class why some products and services have a greater need for quality than others. Focus again
on deciding between quality control and quality assurance in different contexts:
 which method is likely to best meet customer needs in the most consistent way?
 which method is likely to increase/decrease costs to the business?
 which is the best to help the firm to achieve its lean production goals?
The use of quality control or quality assurance (or in some cases both) is dependent on the context. A decision
cannot be made without context and often there is no right answer, just what the learner can effectively argue. The
products suggested in this activity for the class discussion on ‘fit for purpose’ can be used to help illustrate this
136
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
point. Quality is about making products and services which are ‘fit for purpose’. In essence this means meeting
customers’ minimum expectations.
Class discussion about the link between training and quality in the production process using contexts such as:
 medical services – why is training so intense compared to other services?
 school – can better trained teachers offer higher quality service?
 car manufacture – what skills might the workforce need to be trained in using? (welding, robotics,
electricians, etc.)
 food production – why is training important to meet quality standards? What are the consequences of
poor training/quality?
 carpenter – is there a link between the level of training/ experience and the quality of work produced?
Learners answer the following essay question, ‘To what extent is ongoing training essential to the quality of food
produced in a fast food restaurant.' (I)
In the essay, learners should argue both sides of the discussion. Arguments to support why training is important
include health and safety, customer satisfaction and reduced costs. Arguments that 'ongoing' training is not
necessary include:
 relatively low value product compared to high cost of training
 low skill job with high staff turnover
 does fast food consistently require quality standards higher than basic health and safety laws?
www.youtube.com/watch?v=zSyICkGZ6iM – video explaining the difference between quality control and quality
assurance
www.youtube.com/watch?v=0hzqHwu1i_I – video about quality assurance
https://asq.org/quality-resources/quality-assurance-vs-control – notes about the difference between quality control
and quality assurance
For consolidation, 9609/32/ Jun 2019 Q1 (AO3) (F)
9.2.1 Quality control
and quality
assurance
KC2 Context
KC3 Decisionmaking
The impact of Total
Quality Management
(TQM) on a business
TQM tends to be more common in large organisations. If there is one you can arrange a class visit to, investigating
TQM in a familiar context would help learners considerably (there are good case studies in the suggested internet
links and textbooks if not).
Using the visit or case study context, learners produce a written report outlining the benefits that business gains by
using TQM and any costs it incurs.
137
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
Follow this with a class discussion on the importance of Kaizen in implementing a TQM approach, using additional
business case studies to broaden the range of understanding.
KC6 Strategy
Extension activity: Ask learners how they would link the TQM approach to other areas of the A Level syllabus,
such as:
 workforce planning
 motivation
 organisational structure
 communication
 training
 marketing.
This activity gives a good opportunity to focus on KC2 Context.
www.tutor2u.net/business/production/quality_tqm.htm (TQM)
www.brighthubpm.com/methods-strategies/72279-tqm-and-ford-motor-company/ (TQM at Ford motor cars)
For consolidation, 9609/33 Jun 2018 Q1 (AO3) (F)
9.2.2 Benchmarking
The importance of
benchmarking in
quality management
Allocate groups of learners a different industry. Ask them to research the most common industry benchmarks for
that industry, including any legally binding minimum quality standards that act as a benchmark and report their
findings to the class.
Ask learners to look at the common industry benchmarks (appropriate to your country) for a specific item of
equipment, such as a crash helmet, children's toy, seat belts or radio. Learners then write a brief report explaining:
 how the benchmarking process is important to quality control for that piece of equipment
 why most firms adhere to that benchmark
 whether some firms in the market go beyond the industry benchmarks, and if so, why. (I)
For this activity, encourage learners to focus on industries and benchmarks in their own country.
Extension activity: Learners to compare this with benchmarks used in other countries. Businesses often strive to
meet an industry benchmark only to find out the benchmark is changing. This is a good illustration for learners that
the business environment constantly changes and will not wait for a business to catch up.
www.youtube.com/watch?v=8mY2YrYAE-U – video about benchmarking in business.
www.isixsigma.com/methodology/benchmarking/understanding-purpose-and-use-benchmarking/ – article about
benchmarking.
138
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
www.tutor2u.net/business/reference/what-is-benchmarking
9.3 Operations strategy
9.3.1 Operational
decisions
KC3 Decisionmaking
The influence of
human, marketing
and finance resource
availability on
operations decisions
This section is about the role of operations within the boundaries of the other functional areas of the business. The
best approach to this area is to introduce a case study which references not just operational decisions, but also
the other functional areas of the syllabus. Most Paper 3 case studies from past papers will proved a holistic view of
a business. 9609/33 Nov 2018 (BKC) might provide a good example.
Learners draw a square and divide into four quadrants. Label each quadrant into the four functional areas:
 Marketing
 HRM
 Accounting and finance
 Operations.
KC6 Strategy
Hand out the case study and ask learners to identify what is happening in each of the functional areas and to
make a note of these in the appropriate quadrant.
How might these factors affect the operations decision that the business is facing (if using the above case study, it
would be about the new factory project). This activity can be done using smaller case studies form Paper 2 or
based on a local business. (I)
9.3.1 Operational
decisions
KC1 Change
9.3.2 Flexibility and
innovation
KC1 Change
The changing role of
Information
Technology (IT) and
Artificial Intelligence
(AI) in operations
management
Learners investigate how operations is changing due to developments in IT and AI. There is no requirement for
learners to be aware of specific changes in IT and AI, but these can provide useful examples to use. (I)
The need for
flexibility with regard
to volume, delivery
time and
specification
In groups of three learners role-play a scenario between a producer, their customers and suppliers. The focus is to
decide the levels of volume for a new order, the delivery time for the order and the specification of the product
(basic or with added features). Each learner takes the role of one of the following stakeholders:
 supplier (of raw materials) – wants the business so they can make a profit, but has other customers and
would like to negotiate as long as possible for delivery of the raw materials. They would also like to
deliver the materials only once a week
 customer – wants the products as soon as possible for the lowest price. They would like to be able to
As a focus for the activity, learners could focus on the following areas:
 how have recent developments in IT and AI changed how primary sector businesses operate?
 how have recent developments in IT and AI changed how secondary sector businesses operate?
 how have recent developments in IT and AI changed how tertiary sector businesses operate?
139
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale

change or amend their order as late as possible
producer – wants to keep their supplier because they are reliable but also wants to keep the customer
happy. The producer’s job is to negotiate the customer’s price to pay and delivery date, the supplier’s
price for raw materials and delivery date.
Discuss the role-plays and the different perspectives of the stakeholders as a class. Any business could be used
for the role-play, but a locally-produced product may be more useful. For the product, choose any product that can
have an adapted specification, such as a car.
To make the task easier, the producer should be a retailer who buys in a product but does not manufacture it in
any way (e.g. a car retailer).
An obvious link to innovation and its relationship with flexibility. From Henry Ford’s first mass-produced car (in any
colour as long as it's black) through to the almost infinite flexibility in customising products to be unique and
individual in today's world.
9.3.2 Flexibility and
innovation
KC1 Change
KC5 Innovation
Process innovation:
changing current
processes or
adopting new ways
of producing
products or
delivering services
Take a well-known product that has been produced and sold for a number of years, e.g. a chocolate bar. Learners
investigate:
 how the product has been produced throughout history
 why substantial changes in the production process have taken place over time
 what the impetus for this change was (i.e. lower costs, higher quality etc.).
Each learner produces a brief written report on their findings. (I)
Discuss how the process may be different if the business delivers a service rather than produces a product.
Extension activity: learners write an essay on the following question, ‘To what extent is process innovation
essential in the production of...’, choosing one of the following examples:
 mobile phones
 cars
 haircuts
 agricultural goods
 food in a restaurant (I)
Innovation not just in products but also in the management of operations.
For consolidation, 9609/22 Nov 2019 Q2d (AO4) (F)
140
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
9.3.3 Enterprise
resource planning
(ERP)
KC6 Strategy
9.3.4 Lean
production
The main features of
an ERP programme
How ERP can
improve a business’
efficiency in relation
to: inventory control,
costing and pricing,
capacity utilisation,
responses to
change, workforce
flexibility,
management
information
The aims and
purposes of lean
production
Using the Wikipedia link to ERP software packages as reference, allocate groups of learners a different package.
Without focusing on unnecessary technical data or specs, each group researches how these pieces of software
can benefit a business and presents its findings to the whole class. (I)
ERP combines a number of different elements of operations management. Learners do not need to be aware of
any particular system or piece of software, but should now how ERP can solve a number of operational problems
and lead to increases in efficiency for a business.
Bringing together the many aspects of operations effectively requires planning and an implementation strategy to
show how it will deliver benefit the business.
www.excitingip.com/2010/advantages-disadvantages-of-erp-enterprise-resource-planning-systems/
www.youtube.com/watch?v=A98X_bvX2QA
Lean production covers many techniques, including JIT, TQM and Kaizen. Introduce the underlying concepts, by
asking groups of learners to investigate waste in their own school/college. Each group comes up with a waste
improvement plan and designs a poster communicating ways in which reducing wastage would cut costs.
Learners repeat this exercise in relation to a given business. If possible, a visit to a factory to see lean production
methods in operation would be useful for this, but if not choose an appropriate case study that would enable
learners to apply their knowledge in a real business context. (I)
The basic reason for the implementation of lean production is to reduce costs. Learners need to be able to analyse
the usefulness of lean production in improving profitability. Lean production is a way of creating value by reducing
costs. Too often learners think of creating value as adding to the price, but it can equally be true of reducing the
costs.
www.tutor2u.net/business/gcse/production_lean_methods.htm
www.leanproduction.com/top-25-lean-tools.html
For consolidation, 9609/32 Jun 2018 Q3 (AO4) (F)
9.3.4 Lean
production
KC6 Strategy
Kaizen, quality
circles, simultaneous
engineering, cell
production, JIT
Design a production line in the classroom for simple product, such as a greetings card. Learners take turns
working on the production line. Ask each learner in turn to come up with one small improvement, implement this
and then run the production line again. Keep working until there are no more suggestions.
141
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
manufacturing and
waste management
as operational
strategies to achieve
lean production
The limitations of
operational
strategies to achieve
lean production
The links between
lean production and
inventory control,
quality, employees
roles, capacity
management and
efficiency
To fully analyse Kaizen, learners may wish to understand the opposite of continuous improvement. A good
example of this is Business Process Re-engineering (BPR). This is not on the syllabus but may help these
learners develop their understanding. Innovation does not have to be about massive leaps. Continually improving
processes can be just as innovative.
www.tutor2u.net/business/production/kaizen-quality-circles-continuous-improvement.html (Kaizen)
Learners often want to use JIT in every business context, but it is not always appropriate. Give a number of
scenarios such as:
 dog food manufacturers – often have a stock of frozen raw materials but use JIT for packaging (such as
cans and pouches)
 house builders – the distinct phases (foundation, walls, roof, windows, etc.) mean JIT can be used for
most of the materials
 car tyre services – due to the size and range stock needed, JIT is used for everything except the most
common tyre sizes.
For each scenario, learners suggest how and why JIT may be appropriate or not in terms of achieving lean
production.
Class discussion about the costs and benefits of JIT as a means of making production leaner. Mind map the
results of the discussion on the board. Learners come up with examples of businesses where JIT may help
achieve lean production and examples of where JIT would increase costs and therefore make lean production
more difficult.
Extension activity: looking at an alternative system of stock control such as ‘Just in case’ would help learners
analyse JIT in the context of lean manufacture more fully.
JIT adds many new management issues such as the need to manage the link between the business and suppliers
carefully. It is not always going to be the right method for a business to achieve cost savings and therefore
adopting it is a key management decision.
www.brighthubpm.com/methods-strategies/71540-real-life-examples-of-successful-jit-systems/ (JIT)
www.toyota-global.com/company/vision_philosophy/toyota_production_system/ (Kanban)
9.3.5 Operations
planning
KC6 Strategy
The need for
planning operations
Introduce this topic by asking learners to identify future change in their own lives, such as moving out of home,
going to university, getting married or starting their first job. Discuss as a class why changes like these need to be
managed. What are the potential consequences of poor/no management of these changes?
142
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
Give learners a business change context such as:
 legal changes which force new standards on a business
 changes to the economic environment, i.e. recession
 political changes in the government
 technological changes
 new competition in the market.
Learners research these in more detail and:
 identify the reasons for change
 identify the main elements of the change process that will require project management
 identify and explain the main reasons why the project might fail
 explain the consequences to the business if the project is not managed well. (I)
Extension activity: encourage learners to investigate the main principles, processes and techniques of project
management using the links provided as a starting point. (I)
The management of projects is an important skill and one that is prized by employers. Learners who can grasp
these management techniques and apply them will find them useful in many walks of life.
https://en.wikipedia.org/wiki/Project_manager
www.apm.org.uk/WhatIsPM
9.3.5 Operations
planning
KC3 Decisionmaking
KC6 Strategy
Network diagrams as
tools to plan
operations
The main elements
of a network
diagram: activities,
dummy activities,
nodes
Any activity which contains a set of smaller tasks can be divide into a network. A good way to show this is to lead a
class discussion where you work through and write up simple examples from everyday life (such as the morning
routine or baking a cake). Ensure the examples you choose involve activities where there can be some overlap
(i.e. tasks that can be done at the same time).
One valuable aspect of network diagrams is their ability to solve problems. Set learners a series of problems as a
puzzle solving activity, and ask them to construct networks and use these to identify the most efficient network to
solve the problem. (I)
Network diagrams are not complicated as long as the knowledge is practised in simple scenarios first and learners
only move onto more complicated data when they are comfortable with the process.
9.3.5 Operations
planning
KC6 Strategy
Network diagrams as
means of performing
Critical Path Analysis
(CPA), including
Give learners a completed network with activity durations included. To complete the CPA, instruct learners to:
 number the nodes
 calculate EST's from left to right
 calculate LFT's from right to left
143
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
identification of the
minimum project
duration and the
critical path,
calculation of total
and free float,
interpretation of the
results of the
analysis of a
network, how
minimum duration
and floats might be
used in project
management

mark on the critical path.
Learners calculate the total float and free float and explain what these figures mean to the business in reference
to:
 flexibility
 workforce planning
 inefficiency
 capacity.
Tell learners that one of the activities in the network has had an over-run, and give them the required data.
Learners analyse the effect on the critical path and floats. (I)
Once learners have grasped how to construct networks from the previous activity, the process of critical path
analysis can be taught.
www.tutor2u.net/business/production/critical-path-analysis.htm
For consolidation, 9609/32 Mar 2018 Q4a (F)
9.3.5 Operations
planning
KC3 Decisionmaking
The benefits and
limitations of CPA as
a management tool
KC6 Strategy
As with all quantitative data, CPA provides useful data when businesses are making decisions about projects.
However, these decisions need to be made in the wider business context. Using an example of a business or a
case study (9609/32 Mar 2018 Q4b provides a good example), discuss the benefits and limitations of using CPA
as a management tool.
The benefits and limitations of CPA are likely to be rooted in context and so a case study approach is essential in
this topic.
It is important that learners are familiar with how CIE presents networks and critical path analysis. Examples in
some textbooks and websites may be illustrated in a slightly different way, which may confuse learners. Where
possible use past papers.
www.youtube.com/watch?v=poOyKIt7M1g and www.youtube.com/watch?v=NLVlozz_OGs – videos explaining
CPA
For consolidation, 9609/32 Mar 2019 Q2 (F)
Past and specimen papers
144
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
9.1 Location and scale
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
145
Scheme of Work
10 Finance and accounting (A Level)
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
10.1.1 Statement of
profit or loss
The meaning and
purpose of the
statement of profit or
loss
The contents of a
statement of profit or
loss: revenue, cost of
sales, gross profit,
expenses, profit from
operations (operating
profit), taxation, profit
for the year,
dividends, retained
earnings
Introduce the statement of profit or loss (also known as an income statement). One accessible way to do this is to
present it as a ‘story’ of the year’s trading in a particular business. Revenue is the beginning of the story, while
retained profit (if any) and dividends are the ending. Introduce each element in between as the next ‘chapter’, and
pause at the appropriate places to calculate the various profit measures (i.e. gross profit, operating profit etc.).
Conclude with a whole class discussion to ensure understanding.
Give pairs of learners a set of entries from a statement of profit or loss. Ask them to put these in the correct order.
Once learners understand the basics of the statement, extend their understanding by asking them to look at real
statements of profit or loss from local, national or international businesses, interpret the figures and discuss the
data with the class.
Many companies publish their accounts online, and some suggested links are provided here. For the task where
learners look at real statements, do not give them the whole set of accounts, but only the income statement page
without accompanying notes (which are likely to be too technical at this stage).
Downloadable public limited company accounts, e.g.:
www.aboutmcdonalds.com/mcd/investors/annual_reports.html (McDonalds)
www.ikea.com/ms/en_CN/about_ikea/press/press_releases/annual_report.html (Ikea)
Many well-known businesses accounts can be accessed by typing the name into Google and ‘published
accounts’.
10.1.1 Statement of
profit or loss
KC1 Change
Amendment of a
statement of profit or
loss
The impact on the
statement of profit or
loss a given change
Hand out a completed statement of profit or loss. Discuss the elements it contains and what it shows about the
business.
Give learners a set of changes to make to the income statement. Start with simple changes but increase the
complexity as they progress. Learners race to see who comes up with the correct bottom-line figure quickest. (I)
To add challenge, link this to the previous topic on budgeting and hand out the forecast budgets and actuals that
go with the forecast statement. Learners:
 calculate the variances
146
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements




analyse the variances
change the income statement
recalculate the bottom line profit
analyse in writing the variance in profit. (I)
Class discussion on what impact the changes learners made to the statement would have on the business as a
whole and to its different stakeholders. The statement of profit or loss is the story of how much value a business
has managed to create in a year.
10.1.2 Statement of
financial position
The meaning and
purpose of statement
of financial position
The contents of a
statement of financial
position including
non-current assets,
current assets,
current liabilities, net
current assets, net
assets, non-current
liabilities, reserves
and equity
Amendment of a
statement of financial
position
The relationships
between items in the
statement of profit or
loss and the
statement of financial
position
10.1.3 Inventory
valuation
The difficulties of
valuing inventory
Hand out a statement of financial position. Discuss the elements it contains and what it shows about the business.
Give learners a set of changes to make to the statement of financial position. Start with simple changes but
increase the complexity as they progress. (I)
Learners now have a completed and correctly amended income statement (from the previous activity) and
statement of financial position (from this activity). Use these to lead a class discussion about what can be stated
and assumed about the business from these documents.
Discuss the importance of valuing assets in the statement of financial position, including the following questions:
 why should businesses value non-current assets accurately?
 what different ways are there to value an inventory?
 why might inventories lose value over time?
 how could changes in the valuation of non-current assets and inventories impact the stakeholders of the
business and the business itself?
When looking at the income statement and statement of financial position together, highlight the items that are
treated differently depending on where they appear, such as:
 depreciation – a deduction in the income statement and a provision in the statement of financial position
 retained profit – a cash flow into the business in the income statement and a record of equity owned by
the shareholders in the statement of financial position.
Read properly, the changes in a statement of financial position show the changes that a business has been
through from one year to the next.
For consolidation, 9609/12 Mar 2019 Q4 (AO2) (F)
Recap learning on inventory costing and inventory management from AS Level Finance and AS Level Operations.
147
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
The net realisable
value method
Give learners a number of different industries and ask them to identify and explain why inventory valuation may be
difficult in each industry. Suitable examples to look at could include:
 used car industry
 house building industry
 food manufacture
 computer sales. (I)
In groups learners discuss the difficulties involved in valuing unfinished goods or raw materials, such as:
 small business furniture maker has a significant amount of wood in their inventory
 restaurant with a significant amount of raw food in the freezer.
At a suitable point, introduce the net realisable value method and give groups some basic calculations to
complete. Groups then discuss the benefits and difficulties in using this method and present their findings.
Discuss the different elements of the inventory, drawing together both the operations and accounting elements.
Note: although many textbooks refer to LIFO (last in, first out) and FIFO (first in, first out), knowledge of these
methods is not required for the exams.
10.1.4 Depreciation
KC2 Context
The role of
depreciation in the
accounts
The impact of
depreciation
(straight-line method
only) on the
statement of financial
position and the
statement of profit or
loss
Class discussion about the need to depreciate assets. Ask learners why they would rather have a car that is new
over a car that is a week old. Discuss why assets lose value. Link this to the need for accounts to provide a 'true
and fair' view of the business. Then hand out the following data for a suitable business:
 book (original) value of the asset
 residual value (if any)
 lifetime.
Learners calculate the annual depreciation using the straight line method. To help learners understand the
limitations of this method of depreciation, ask them to:
 research the prices for a basic/standard make of car at different ages, (e.g. one year old, two year’s old)
 analyse what happens to the value of the car at the beginning of its life, compared to the end. (I)
On completion, discuss the finding as a class.
Extension activity: learners try the reducing balance method of depreciation as well and analyse in writing its
benefits and limitations compared to the straight line method. (I)
Finally, learners need to show the impact of depreciation on the income statement and statement of financial
position. Give learners a set of accounts with no provision for depreciation. Ask them to calculate the required
148
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
depreciation and then recalculate the bottom line figures for the statements, providing a short written analysis of
the effect on Net Profit and Net Assets. (I)
Depreciation has a dual role in accounts (as a provision and deduction) as discussed earlier. Learners need to
understand both roles.
Note: learners are only required to use the straight line method of calculating depreciation for this syllabus.
However, learners may also find the reducing balance method and its application interesting and useful.
Useful examples for comparing straight line and reducing balance methods of depreciation include:
 a photocopier, because it is used at a constant rate and has a fairly evenly reducing value (straight line)
 a computer, because it loses a lot of value as soon as it is sold but is likely to continue performing for
several years (reducing balance).
www.tutor2u.net/business/accounts/assets_fixedassets_depreciation.asp
www.youtube.com/watch?v=IKihYinXmIg – video explaining how depreciation is calculated.
10. 2 Analysis of published accounts
10.2.1 Liquidity ratios
KC6 Strategy
The meaning and
importance of
liquidity
Current ratio:
calculation and
interpretation
Acid test ratio:
calculation and
interpretation
Methods of
improving liquidity
Introduce ratios by explaining that they are two numbers compared against each other. Using the accounts worked
on in the previous activities, learners make some ratios before you tell them the specific ratios used in the
syllabus, and discuss their findings. Conclude by introducing the two liquidity ratios (current ratio, acid test)
specified in the syllabus.
Hand out either a number of years’ accounts for one business, or one year of accounts for a number of different
types of business. Learners calculate the current ratio first as this is the easiest. When they have completed this,
ask them to calculate the acid test ratio (this will provide a different perspective as it won’t include stock –the least
liquid asset). Finally, learners explain in writing the reasons for the results obtained.
Using a range of different business contexts, follow this with a class discussion on the best ways to improve the
liquidity of each business. Some businesses require huge amounts of stock (such as retail businesses) and
therefore a low acid test may be expected. Include a focus on how improving liquidity can help reduce working
capital problems. Remind learners that by definition a ratio is only useful if it is compared.
Learners need to understand that stock is the least liquid current asset. Demonstrate this with examples of
businesses going into liquidation (i.e. a car manufacturer). Who would want to buy the stock (for full price) if the
149
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
business has a limited future?
For the second and third tasks, the benefit of looking at the accounts of different types of business is this will show
that a definitive 'right' ratio is not possible over all businesses.
Again, an opportunity throughout all the ratio analysis to show learners the importance of manager having access
to accurate and useful data to make better decisions.
For consolidation, 9609/11 Jun 2020 Q7b (AO4) (F)
10.2.2 Profitability
ratios
The meaning and
importance of
profitability
Return on capital
employed:
calculation and
interpretation
Gross profit margin:
calculation and
interpretation
Profit margin:
calculation and
interpretation
Methods of
improving profitability
Give learners a suitable statement of profit or loss and ask them to calculate the gross profit margin first as this is
the easiest. When they have completed this, ask them to calculate the net profit margin as well. This provides a
different perspective (i.e. after all direct and indirect costs have been deducted). Finally, learners explain in writing
the reasons for the results obtained.
Using a range of different business type contexts, follow this with a class discussion on the best ways to improve
the profitability of each business. Include a focus on how improving profitability can help reduce working capital
problems. Learners should understand that a margin can be calculated on any profit measure (gross, operating,
net, etc.) but that it is not 'bottom line' profit, unless the net profit after all deductions has been used.
During the class discussion, make sure learners understand that different business types have different needs for
direct and indirect costs. A manufacturing business is likely to have a large number of direct costs and indirect
costs, whereas a service sector business is likely to have much lower direct costs and therefore a high gross profit
margin in comparison.
Hand out a set of business accounts and learners calculate the return on capital employed (ROCE) ratio together
with a written analysis from the following stakeholder perspectives:
 owners – the most obvious user of ROCE
 managers – more likely to use day-to-day figures than published accounts, but may be held responsible
for changes
 employees – may be looking for job security
 customers – unlikely for many businesses, but where there is a large financial commitment to purchase,
a customer may wish to know about the ROCE.
Choose a set of accounts that learners can use throughout this whole topic to calculate profitability, financial
efficiency, gearing and investor ratios and trends over time. Ideally this will be for a business they already know.
150
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
The difference between profit and profitability is an important one – learners should not use these terms
interchangeably.
All of the ratios are highly useful tools for managers to base decisions on.
For consolidation:
 9609/22 Mar 2019 Q1bi (gross profit margin calculation)
 9609/31 Jun 2019 Q4aii (ROCE calculation) (F)
10.2.3 Financial
efficiency ratios
The meaning and
importance of
financial efficiency
Rate of inventory
turnover: calculation
and interpretation
Trade receivables
turnover (days):
calculation and
interpretation
Trade payables
turnover (days):
calculation and
interpretation
Methods of
improving financial
efficiency
10.2.4 Gearing ratio
Using the same set of accounts as for the previous activity, learners calculate the inventory turnover, the trade
receivables turnover and the trade payables turnover. (I)
On completion, discuss the results and the trends over time with the class to ensure they understand what each
result identifies about the business.
Extension activity: learners identify and discuss with the whole class:
 businesses/industries where you might expect a very low or high inventory turnover
 businesses/industries where you might expect a very short or long period for days’ sales in receivables.
Days' sales in receivables is often referred to as ‘debtor days’.
Learners should be aware of methods to improve financial efficiency. This requires application of previous learning
and is likely to be a good opportunity to revise topics such as:
 inventory management
 lean production
 sources of finance
 stakeholders.
For consolidation, 9609/33 Nov 2018 Q4 (calculation and AO4) (F)
The meaning and
importance of
gearing
Using the same set of accounts as the previous activity, learners calculate the gearing ratio. (I)
Gearing ratio:
Learners identify and discuss how the gearing ratio may affect the following areas of the business:
On completion, discuss what could be considered highly geared (more than 50%) and low geared (less than 50%).
151
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
calculation and
interpretation
Methods of
improving gearing



potential shareholders/investors
current owners
sources of finance.
Class discussion on how the managers of a business may still try to encourage investment despite poor gearing.
As with all ratio analysis, the interpretation of gearing is dependent on the context. In some industries high gearing
is normal and expected, whilst in others it is not. Learners need to think about how the context may affect their
interpretation.
How a business can improve their gearing will be dependent on the context and the type of business.
10.2.5 Investment
ratios
KC6 Strategy
The meaning and
importance of return
to investors
Dividend yield:
calculation and
interpretation
Dividend cover:
calculation and
interpretation
Price/earnings ratio:
calculation and
interpretation
Using the same set of accounts as the previous activity, learners calculate the investment ratios (dividend yield,
dividend cover and price/earnings ratio). (I)
On completion, discuss what might be acceptable in terms of dividend yield, cover and P/E ratio. What might the
shareholders do if these are too low?
Learners identify and discuss how the investment ratios may affect the following areas of the business:
 potential shareholders/investors
 current owners
 sources of finance (especially gearing).
Follow this with a class discussion on how the managers of a business may still try to encourage investment
despite poor investment ratios.
Again, context is the most important factor affecting the interpretation of investment ratios.
Methods of
improving investor
return
10.3 Investment appraisal
10.3.1 The concept
of investment
appraisal
The need for
investment appraisal
Ask learners what they would invest in if they had a substantial sum of cash (state whatever seems reasonable to
buy a significant investment). The investment does not need to be shares, but could be an antique, a piece of
technology or anything learners think would bring in more revenue than the original cost. (I)
152
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
Ask groups of learners to analyse each other’s planned investment and research the likely returns they would get
from their investments. The group then makes a judgement on which of the proposed investments to support.
KC6 Strategy
Class debate on which of the proposed investments would:
 have the highest risk – why?
 bring in the most revenue.
Give groups of learners a well-known business for them to find out and discuss:
 what investments that business has made in the past (e.g. new shop openings, new
machinery/techniques, etc.
 what they might be planning to invest in in the future
 why businesses invest, what they hope to achieve and why they take the risks
 how investment appraisal can help them make the decision about whether to invest or not.
Each group produces a table of the likely benefits and costs of the investment resulting from this analysis and
present its findings to the whole class.
Investment appraisal should not just be a numerical technique, but also encompasses qualitative factors. Learners
should be able to argue using the numerical data and the context of the business.
Risk and reward are the most obvious way of creating value. The greater the risk the greater the potential reward
and value created.
www.thestudentroom.co.uk/wiki/revision:investment_appraisal
10.3.2 Basic
methods: payback,
accounting rate of
return (ARR)
The meaning,
calculation and
interpretation of
payback and arr (arr
= (average profit/
average investment)
× 100)
Introduce the terms ‘payback’ and ‘Accounting Rate of Return (ARR) and what they mean.
Hand out suitable data and learners calculate both payback and ARR. Start with simple examples and, once
learners understand the basic methodology, move on to more complicated figures.
Give groups of learners three investments with different payback periods and ARR. Ask the groups to discuss
which of the investments they would choose to invest in and why.
Extension activity: discuss what other information is required before an investment can be fully appraised and
what they see as the limitations of the payback and ARR methods. Class discussion to focus on the key points.
www.youtube.com/watch?v=kEsZKO87TlU – video about payback
www.youtube.com/watch?v=-ICsKIB6AzI – video about ARR
153
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
For consolidation, 9609/31 Nov 2019 Q4ai and 4aii (calculation) (F)
10.3.3 Discounted
cash flow method:
net present value
(NPV)
The meaning,
calculation and
interpretation of NPV
Ask learners whether they would prefer $100 now or in a year’s time. They should say they would prefer the cash
now. Say that due to the rate of return, they can choose between $90 now or $100 in a year and then an
increasing time interval. Given an assumed inflation rate or rate of return from another investment option, at what
point would learners prefer the $100? This is the basis for discounted cash flow.
Hand out suitable data and ask learners to calculate the net present value (NPV) amounts. Start with simple
examples and once learners understand the basic methodology move on to more complicated figures.
Once learners are confident with the calculations, put them into groups and hand out a set of investments (three is
enough) with the relevant NPV data. Each group analyses and discusses the supplied data and comes to a
recommendation about which of the three investments the business should pursue. For this activity, it is best to
give learners the NPV rather than asking them to calculate it so they can focus on the key requirement of
analysing and evaluating the data, without some groups making errors in the initial calculations.
Discounting cash flows allows for the combination of time and profitability of an investment to be taken into
account. Give learners plenty of time to practise these calculations.
For consolidation, 9609/31 Nov 2019 Q4aiii (calculation) (F)
10.3.4 Investment
appraisal decisions
KC2 Context
KC3 Decisionmaking
Quantitative results
and their impact on
investment decisions
Hand out a suitable case study of a business with a range of potential investment decisions. Learners analyse and
evaluate the quantitative and qualitative factors involved. They should then recommend and justify in writing which
investment decision the business should make. (I)
Qualitative factors
and their impact on
investment decisions
In groups learners evaluate each other’s written recommendations, identify what each fellow learner has done well
and what could be improved in their analysis and evaluation.
Comparison of
investment appraisal
methods, including
their limitations
Discussion on the whole topic of investment appraisal. As part of this, learners produce a mind-map of the topic
including all the numerical techniques and the most common qualitative factors encountered. Investment appraisal
should not just be a numerical technique, but also encompasses qualitative factors. Learners should be able to
make a case using both the numerical data and the background context of the business.
Quantitative factors are based on numbers and calculations, whereas qualitative factors are based on nonnumerical data, context and other issues which cannot be quantified. Management is about using figures, but also
knowing when the numbers are not enough. Good managerial decision-making is based on both quantitative and
154
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
qualitative factors.
For consolidation, 9609/31 Nov 2019 Q4b (AO4) (F)
10.4 Finance and accounting strategy
10.4.1 The use of
accounting data to
enable strategic
decision making
KC6 Strategy
The use of financial
statements in
developing strategies
The contents of an
annual report and
their usefulness to
business and other
stakeholders
Learners have already been introduced to elements of an annual report (statement of profit or loss, statement of
financial position, cash flow). However, an annual report includes many other elements. Whilst learners do not
need to know about the specifics of these, the annual; report shows how the financial statements can be used
within the broader framework of business strategy.
Learners find an annual report from a business which interests them. This could be any sized business as long as
the annual report is available. Learners summarise how the financial statements link to the strategy of the
business. This is likely to be included in a statement from the chairperson of the business, which is usually
included in the annual report.
Extension activity: learners calculate relevant ratios that link to the business’ strategy. Based on one annual
report, role play the reactions of the different stakeholders of the business and how they might react to the annual
report. This can be done in the format of an annual general meeting (AGM) with all the stakeholders present.
Examples of relevant stakeholders could include:
 shareholders
 potential shareholders
 employees
 lenders
 local community
 competitors.
Each learner can role play the reaction of each stakeholder. This can also be completed as a written report. (I)
10.4.2 The use of
accounting data and
ratio analysis in
strategic decisionmaking
KC6 Strategy
Assessment of
business
performance over
time and against
competitors
The impact of
accounting data
Learners carry out a research project on the accounts of a suitable business. Their finished report should contain:
 a description of the context of the business
 calculation of the following types of ratios over two years:
- profitability
- liquidity
- efficiency
- shareholder
- gearing
155
Scheme of Work
Syllabus ref. and
Key Concepts (KC)
Learning objectives
Suggested teaching activities and resources
10.1 Financial statements
including ratio results
on business strategy


The impact of debt or
equity decisions on
ratio results

The impact of
changes in dividend
strategy on ratio
results
explanation of the trends in the ratios between the years
analysis of the business from at least three stakeholders’ perspectives (e.g. owners, managers, potential
investors)
an evaluation of the success of the business. (I)
Learners compare their reports and ratio results with each other. Hand out a set of less encouraging accounts to
groups of learners. Ask them to calculate all the appropriate ratios and recommend strategies to improve the
results.
Hand out background for that business and ask each group what information they can now use to analyse the
business better. Groups produce a table setting out the limitations of just using just the accounts to appraise a
business. Each group feeds back to the class which uses this to produce a definitive table of limitations.
The impact of
business growth on
ratio results
Many large limited companies in particular publish their accounts on line. Encourage learners to select a business
type or sector in which they have a particular interest or familiarity, but also make sure the accounts they use have
the technical financial notes and sections not relevant to this syllabus removed before starting.
The impact of other
business strategies
on ratio results
The accounts you have been using so far for this topic are likely to be those of successful businesses. However,
learners must be able to recommend strategies to improve results as well, so for the final two group tasks, hand
out a set of relatively poor accounts. If there are no obvious ‘real world’ examples, Cambridge Past Paper 3
questions often include a set of fictional accounts you can base this on.
The limitations of
using published
accounts and ratio
analyses
Past and specimen papers
Past/specimen papers and mark schemes are available to download at www.cambridgeinternational.org/support (F)
156
Cambridge Assessment International Education
The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
t: +44 1223 553554
e: info@cambridgeinternational.org www.cambridgeinternational.org
Copyright © UCLES 2021